Four Paired Stocks Worth Watching This Week Essay

quaternion Paired Stocks Worth Watching This Week - Essay ExampleHowever, at to the lowest degree three things justify this news. One is that the FDA is not compelled to heed the advice of its control panels. Two is that pronouncements by spokespersons of the FDA point out that the recent panel passport summarized above is not likely to have an impact on existing applications for drug acclaim. This means that the applications for approval. Three, consensus lore from insiders is that at any rate, the two companies already have in their possession a wealth of existing, front to approval clinical data on human trials involving measuring the impact of their respective medications on strokes and nervus ailments, and can comply with the recommendations of the FDA panel if necessary, without resorting to new, pre-approval clinical trials. All these taken together means that while on the surface, the FDA panel recommendation seems to be somewhat of a drag on the approval train for Vi vus and Arena, the reality, particularly with the announcements of the FDA spokespersons hinting that the approval processes have a slim chance of being derailed, is that both companies are probably in for a rosy future as far as the approval process is concerned, at least at the moment. Indeed, in reaction to the news on the recommendation of the FDA panel, the stock prices of both Vivus and Arena come up (Edney and Larkin The Fly on the Wall). This joint rise in the stock price underscores market perception and inherent market and research dynamics that couple the two stocks and make of the two a stock match worth watching. More all over, the two are locked in a tight race for billing and for first-mover, as head as for the corollary financial rewards, to get to market with their respective medications for obesity. It is interesting, looking at the stock price charts over the last six months, how in recent weeks the fate of the two stocks seem to have coupled even more tightly . Vivus shares spiked fifty percent in beforehand(predicate) February of 2012, and has plateaued at a level of roughly US 20 dollars a share. Following this trend, Arena shares spiked 50 percent in early March, plateauing so far at around US 3 dollars a share. It is interesting to see how upgrade milestones and market development for the two firms impart reflect on their respective share prices (Edney and Larkin The Fly on the Wall Google Finance (a) Google Finance (b)). The market is on a keen lookout for key approval milestones for the two competing medications from the two firms. The drug Qnexa by Vivus seems to be ahead of the pack, with ordained news coming from an FDA panel on February 22 of this year which weighed risks against benefits and found that the drugs risks were dimmed by its benefits. The FDA may or may not heed that panel finding, and at any rate come up with a decision on Qnexa by April 17 of this year. Lorcaserin, which was developed by Arena, is set for an FDA panel scrutiny by May 10. The FDA will then, by the 27th of June of this year, make its decision on the latter drug. The consensus is that positive news for Qnexa/Vivus ought to translate to positive news for lorcaserin/Arena,