adenovir

Discovery Labs: Panic at the DSCO

I'd like to correct one error in your article...the meeting with the FDA is on June 18th, not the 15th. Still prior to options expiration, but much closer. That could keep the implied volatility up until then.

As far as the drug goes, I think it's very unlikely that anything significant will happen until after options expiration in June. Most likely we will get a class 1 review from the FDA which gives them 60 days to make their decision. That puts it somewhere in August.

This drug will get approved. The efficacy data is convincing, safety issues have been resolved, and manufacturing issues are the last thing to go. Whether DSCO does it on their own, with a partner, or gets bought out is still an open question.

Full disclosure: Long DSCO stock.