After years of waiting, the FDA finally approved Human Genome Sciences (Nasdaq: HGSI) Lupus drug, Benlysta.� It was a happy day for the millions of those who suffer from this brutal illness and for the weary investors who maintained the faith in the pharmaceutical company.� Costing more than $35,000.00 per year per user, sales of this new drug via a partnership with drug powerhouse�Glaxo Smith Kline (NYSE: GSK) are expected to hit $3.6 billion worldwide by 2015. �Sandra Raymond, president of the Lupus Foundation told Bloomberg, ��This is a historic day for the millions of people with lupus and their families around the world who have waited more than 52 years for a break through. It is a significant first step toward reaching our goal of developing an arsenal of new, safe, effective, and tolerable treatments.�� WOW, talk about great news!� The stock price surged higher in the after hours and is continuing to climb in the pre market, Thursday.
Now for the cynics; despite the FDA approval, the actual evidence of Benlysta’s effectiveness is mixed. It has been proven to work on about 1/3 of all patients.� In addition, due to the high cost, Glaxo will have to convince governments to cover the cost in Europe.� This makes several analysts believe sales will be much slower than expected.
Technically, the significant resistance at $27.50 has been pierced in pre open trade.� Price burst above the 200-day moving average, striking $30.00 per share prior to falling back. If you are already in, you missed the pop.�� I would exercise extreme caution at this time going long.� Watch the $30 per share level for a break out trade signal.
No comments:
Post a Comment