There are days when the news that comes out of the stock market makes
you want to rip the router out of the wall and just forget about stocks
for a couple of days. Thursday, August 8th was one of those days as the
FDA delivered a sharp kick to the collective groins of Wright Medical (WMGI) shareholders with a nearly impossible-to-justify rejection of the company's application for the Augment orthobiologic product.
If
there was any good news, and that's a big "if", it was that most
analysts were not fully incorporating Augment into their numbers for
Wright Medical. Consequently, the rejection is not devastating from a
numbers perspective. Moreover, it's still at least theoretically
possible that the company can find a way to get this product on the
market eventually, where it could still be a multi-hundred million
dollar product. For now, though, investors would do well to think about
Augment on par with getting included in the will of a wealthy uncle you
didn't even know you had - the FDA has made it clear that that Augment
will reach the U.S. market more or less over its dead body.
Please follow the link to continue:
FDA Kicks Wright Medical In The Groin - What Now?
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