Eagle Pharmaceuticals, Inc. (NASDAQ: EGRX)
Eagle Pharmaceuticals, Inc. (EGRX), a specialty pharmaceutical company gapped down on Friday on news that the FDA rejected its new drug application for its blood thinner drug Kangio. The drug was made to help prevent blood clotting in patients undergoing heart surgery. The FDA did not approve Eagle’s application in its present form and has requested additional information from the company. Eagle Pharmaceuticals stated that they will work with the FDA to determine the appropriate steps to move forward.
Eagle Pharmaceuticals, Inc. CEO’s Comments
“We are evaluating the FDA’s response and will work closely with the agency to better understand and address their comments regarding Kangio,” said Scott Tarriff, President and Chief Executive Officer of Eagle Pharmaceuticals. “We remain committed to Kangio as an important new formulation of bivalirudin for intravenous use, offering multiple benefits for patients and care givers,” concluded Tarriff. Business Wire
EGRX Technical Analysis
EGRX gapped down in price yesterday to $45.01, down from the prior day’s close of $53.68, which is a 16% decrease in price. Taking a look at the daily chart we can see that the last time EGRX traded below this price level was on March 31st, 2015 when it traded at $41.89. Taking a closer look at the daily chart we can see that EGRX has been on a decline dating back to December 16th when it traded at $99.87. With the disappointing news EGRX is now approaching its 52 week low price $36.75. EGRX has a low float of 6.19 million shares and is trading over 4.5 times the normal daily trading volume. EGRX did hit pre market lows of $39.78, but bounced back $5.23 at the open, or equivalent to 13%. For trading purposes, my entry point short would have been $44.90 looking for a run down to $42. My stop loss would have been $45.15, fearing anything above that and the stock would start to fill in the gap down.
Eagle Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing and commercializing injectable products primarily in the critical care and oncology areas in the United States. The company offers argatroban to treat heparin-induced thrombocytopenia; Ryanodex injectable suspension for the treatment of malignant hyperthermia; non-alcohol docetaxel injection, a chemotherapeutic agent for the treatment of breast, non-small cell lung, prostate, head, and neck cancers/gastric adenocarcinoma; and diclofenac-misoprostol. It develops EP-3101, a bendamustine ready to dilute (RTD) liquid; EP-3102, a bendamustine short infusion time RTD liquid for the treatment of chronic lymphocytic leukemia and indolent non-Hodgkin’s lymphoma; and EP-4104, a dantrolene for the treatment of exertional heat stroke. The company also develops EP-5101 (pemetrexed) as RTD liquid, which is in pre-clinical formulation and toxicology studies to treat lung cancer and mesothelioma; and EP-6101, a bivalirudin RTU liquid formulation for the treatment of percutaneous transluminal angioplasty. Eagle Pharmaceuticals, Inc. was founded in 2007 and is headquartered in Woodcliff Lake, New Jersey. Yahoo Finance