The efficacy and safety results from the two clinical trials were so overwhelmingly positive that the only way Omidra was not going to get approved is if the company messed up with the filing or didn't have the manufacturing tied down. Having said that, I thought a 10%+ rise upon approval was in order as a de-risk on the filing/manufacturing issues. The sell-off today is most likely from the short-term traders that were looking for a larger pop and when it didn't materialize are now moving on to greener pastures. Some comments in the PR may have tempered any enthusiasm, as well - I thought they had guided that they were ready to market/ship Omidra almost immediately after approval (Wedbush was assuming Jul) and now they are saying "late summer/early fall". Also, they don't yet have Medicare/Medicaid reimbursement tied down, which is a big part of the revenue profile. Maybe today's call will provide some comfort around the launch and revenue potential, but this may be one of those "show me the money" stocks that doesn't move until the company proves the revenue potential is there?
Price was already figured. Sell the news. Expect a nice pullback. It takes time to get the drug out there from sales force to doctors, then thru hospital P & T committees before you see any revs. Assuming revs are good you then will see this back up. Long term I see $20s but you have to be patient.
The approval was some what already priced in. What a lot of bulls are waiting for is how is OMER going to translate that approval into revenue/profits for the company. Hopefully management will lay out a detailed road map at the 4:30 conference call. I am curious what amount of potential revenue the company is forecasting for Omidria.