BioCryst Receives Fast-Track Status for Peramivir, But Does It Justify The Stock's Appreciation? (BCRX)

Yesterday, the FDA granted Fast Track status to BioCryst’s (ticker: BCRX) influenza drug, peramivir. Investors were overjoyed by the news, sending the stock up 18% on the day. Was the market’s reaction to the news rational? Is a Fast Track designation worth $90 million? Investors seem to think so – that’s how much they added to BioCryst’s market capitalization on the news.

To address the question of the value of Fast Track designation, let’s first look at what “fast track

Comments

[onewaystox:]

this is (potentially) a pretty big mkt for BCRX to get into. And the $550MM mkt cap it now sports (@ $21/shr.) may well look cheap in the future.

2006 Jan 18 11:12 AM

[BioBlogger:]

The market does have the potential to be significant; however, I argue that the current valuation not only reflects that potential but implies that that potential will be realized with certainty.

2006 Jan 18 12:57 PM