Adamis Pharmaceuticals Inc (NASDAQ: ADMP) may have a major catalyst on the way in the next several days. Adamis could be on the brink of a third ruling from the U.S. Food and Drug Administration related to its leading product candidate, a pre-filled epinephrine syringe that could serve as a low-cost alternative to the pricier EpiPen made by Mylan N.V. (NASDAQ: MYL).
The FDA has twice previously rejected Adamis’ product, once in March 2015 and once in June 2016. However, Adamis once again filed an NDA for the syringe in December after addressing concerns the FDA raised in the June rejection.
The FDA could have ruled on the pen as early as Wednesday, according to RTTNews.
If Adamis beats the odds and gains approval for its syringe, the stock certainly has plenty of short squeeze potential. However, if the syringe is rejected a third time, the prospects for Adamis’ leading product will be dimmer than ever.
Traders that aren’t afraid of volatility should look for a huge move in Adamis shares one way or another.
Mylan was the subject of extreme criticism from former Democratic Presidential Candidate Hillary Clinton and others in 2016 after the company raised the price of the potentially life-saving EpiPens by more than 400 percent in a matter of several years.
Editor's Note: A previous version of this article incorrectly listed the company in question as Adamas Pharmaceuticals Inc (NASDAQ: ADMS). We apologize for any confusion and have rectified the errors.
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