.. due to the announcement about OHRP's completing 50% enrollment. I glanced at the REGN board today to see if they were aware of OHRP's news today, and low and behold, and suddenly they ARE talking about OHRP and blame the OHRP news today for the REGN price drop of about $4.5 per share today.
One poster on the REGN board wrote "manipulation is the answer for the price drop. The news of the new VEGF drop was out before the market opened and REGN still went up initially. This product is only phase II and years away (might as well be light years away in the pharma game). And the delivery system (eye drop) will come under huge scrutiny and probably won't even get FDA approval."
Well 'VEGF drop' is how that poster refers to squalamine eye drops and in my opinion, the drug will get approval as it needs little if any "scrutiny" by the FDA.
The loss of $500 million market cap of REGN and gain of $6 million in OHRP's market cap represents that the market has increased it's assesmment of the odds of squalamine wining it's race with REGN from 150 to 1 up to better odds of only 80 to 1. I arrive at 80 to 1 figure by dividing the loss of REGN market cap today divided by the gain of OHRP's market cap today, so 500 million / 6 million is about 80
The day that the market thinks the odds are equal between OHRP and REGN, the change in market caps that day will be equal but opposite in sign (obviously I feel the change will be positive for OHRP and negative for REGN on that day!)
As always do your own DD; I am not an expert in any field and could be wrong.
Actually looking at this more from the shareholders have changed their valuation of these 2 companies on a per cent basis may be more important. Since OHRP went up nearly 3% today while REGN shrank 'only' 2% today, the odds are now only 3 to 2 in REGN's. This may signal that among investors in REGN, more and more are going to now be buying OHRP to hedge their bets.
correction when I wrote "the odds are now only 3 to 2 in REGN's"; I meant of course to say "the odds are now only 3 to 2 in REGN's favor". That is a big change from 150 to 1, but the market will slowly correct this imbalance as OHRP shares gain value and REGN shares lose value