Image via CrunchBaseI quietly predicted today's FDA outcome on Alexza and Jazz Pharma's CRL, last week in my FDA Calendar prediction. Here were My Predictions which stated that investor's should be shorting Alexza last week. That would have netted a huge profit on Alexza's demise. I think that shorting stocks or place put call options on FDA catalyst events can be profitable if done properly. Although Jazz did not go down today, I do not see good things for their future You really have to know what you are doing though when you make projections like this as is the drugs are approved then you will not be too happy with the results. It's really a difficult line to cross but I see the value of Shorting Stocks under the Obama FDA panel. The panel has rejected 4 drugs so far in October.
That doesn't mean that you should have shorted Hospira or Human Genome Sciences (HGSI) because these are large and mid cap stocks that are affected less by these FDA decisions. Human Genome has an upcoming drug approval in December for their Lupus therapy and I actually like the stock right now and consider it a buy. Alexza and Jazz just had too many red flags for me for approvals. You have to do your homework and look through the clinical trial data available. Or just follow BioPharma Investor and let me give you helpful advice on these decision.
Wikinvest--Alexza Pharmaceuticals (ALXA) Closed: 1.35 Down 1.65 for a 54.46% Loss
Wikinvest--Jazz Pharmaceuticals (JAZZ) Jazz will probably will be going down with today's CRL.
Jazz Pharmaceuticals Receives FDA Complete Response Letter Regarding JZP-6 for Treatment of Fibromyalgia
FDA O-Fer October Drug Approvals
BOSTON (TheStreet) -- U.S. regulators have to approve at least one new drug in October, right?
The U.S. Food and Drug Administration has a perfect 0-4 record so far this month -- four drug approval decisions, four drug rejections. Monday, Alexza Pharmaceuticals(ALXA) and Jazz Pharmaceuticals(JAZZ) received the bad news. Last week, it was FDA rejections for Human Genome Sciences(HGSI) and Hospira(HSP).
Perhaps the best shot for more positive news will come Tuesday when Alkermes(ALKS) is expecting FDA to rule on its drug for opioid addiction.
