$RLYP Relypsa (NASDAQ: RLYP). The stock spikes le
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Posted On: 05/05/2017 2:25:19 PM
$RLYP Relypsa (NASDAQ: RLYP). The stock spikes leading into and then on FDA approval of its first drug. Then that is usually followed by some “buy the rumor, sell the news” trading action especially if the name was a speculated buyout target and that did not materialize right after the good news from the FDA.
Worries about commercialization, such as need to raise additional capital to fund the rollout of the compound and initial sales disappoint, often cause the stock drop. This is often followed by the inevitable class action lawsuit.
As I have said many times on these pages. There are three sure things in life. Death, taxes and if a small biotech stock drops more than 15% for any reason, some unscrupulous ambulance chasing law firm will initiate a class action lawsuit in the name of the “shareholder”. 95% of the time turns out to be nothing but an immaterial nuisance.
However, if one is patient, often these stories turn out to have a happy ending. In the case of Relypsa, it was acquired for a 60% buyout premium last year by Galencia.
Worries about commercialization, such as need to raise additional capital to fund the rollout of the compound and initial sales disappoint, often cause the stock drop. This is often followed by the inevitable class action lawsuit.
As I have said many times on these pages. There are three sure things in life. Death, taxes and if a small biotech stock drops more than 15% for any reason, some unscrupulous ambulance chasing law firm will initiate a class action lawsuit in the name of the “shareholder”. 95% of the time turns out to be nothing but an immaterial nuisance.
However, if one is patient, often these stories turn out to have a happy ending. In the case of Relypsa, it was acquired for a 60% buyout premium last year by Galencia.
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