- Thinly traded micro cap Chiasma (NASDAQ:CHMA) is off 10% premarket on increased volume in response to a bearish article posted today by TheStreet's Adam Feuerstein. He says his sources tell him that the FDA will reject the company's marketing application for lead product candidate Mycapssa (octreotide capsules) for the treatment of acromegaly due to lack of efficacy. The agency's action date (PDUFA) is tomorrow.
- There are cheerleaders, though. Cowen's Ritu Baral expects approval and has a Buy rating on the stock with a $32 price target.
- If the NDA is rejected, the stock could drop to the $6 range. This is yet another shining example of the binary nature of biotech investing.
- Read now Chiasma's Mycapssa For Acromegaly Treatment Is Likely To Receive FDA Approval