hey4ndr3w (96.80)

Third Time's the Charm for DSCO?

April 01, 2009 – Comments (1) | RELATED TICKERS: DSCO

Discovery Labs is my current favorite heartbreak story. It's a story about a great product based on strong science being sheparded through a tortuous regulatory landscape by a crappy management team. I'm not going to regale you with the long tale of sorrow and the company's on-again, off-again love affair with the FDA. The short version: the FDA has to take action on the company's submission (PDUFA) for it's lead drug candidate on April 17th. The decision, I predict, will finally be favorable, which ought to make a multibagger of the stock price in just a day or two afterwards (it has been trading between $1.2 and 1.8 for, like, ever). The real payoff, though, should be a licensing deal or an outright acquisition, which should relieve this company of it's remarkably ineffective leadership. I have real money in at an average basis of about $1.4. If you're thinking of taking a cheap flyer, this might be worth a look.