Playing with FDA approvals can be incredibly frustrating

[Russ Smith]

few weeks ago Identified 3 stocks I wanted to own Durect(DRRX), Pain Therapeutics(PTIE) and Titan Pharma(TTNP). All 3 are in similar stuff with addiction resistant versions of Oxycontin which could be huge.

I actually used to work next to Durect about 15 years ago, they were subleasing for us at some point, they weren't in the Oxycontin area then.

My orders when through on PTIE and TTNP, but not DRRX. I stuck to my guns.

I sold PTIE Friday made about 10%. Today it's up 25% and was up as much as 40 on positive news about their drug!. DRRX is also up the same and it too was up as much as 40% during the day.

TTNP was up 15% last week, I guess I wasn't paying attention when i bought it I usually pick a percentage between 10 and 15 and lock in a sell order but I didn't. It then fell to me being down nearly 10%. Today they're awaiting word if they got FDA approval, it's up about 15% so people are guessing it's a go, but that's 15% from the down, so still well short of where it was last week.

Kicking myself on PTIE and DRRX though, could have made 3-4 times as much on PTIE and DRRX was just a case of me being willing to literally make a market buy but the order wouldn't go through.

 

[Rivercard]

Today they're awaiting word if they got FDA approval, it's up about 15% so people are guessing it's a go,

If it's a go then Congressmen and FDA officials in the who are certainly getting in on the early action.

 

[Russ Smith]

If it's a go then Congressmen and FDA officials in the who are certainly getting in on the early action.

not a go and frankly proves your point. It ran up from 1.60 to 1.90 then sold off to 1.60. Then it gets rejected and is currently down 80% to like 33 cents a share!

I didn't have that much, obviously wish I'd sold at 1.90. But if you look at the trading action it's quite clear people knew something was bad so they ran it up, sold and then let everyone else take the hit today.

That's the downside to FDA approvals and trading, you can never tell when something is going to get approval or not. This is the 2nd time I've been in a stock that had overwhelming support, and didn't get approval.

This one even ASAM, the AMerican Society of Addiction Medicine, came out and publicly spoke on behalf of the company endorsing it to the FDA and saying how important it was drugs like this one got approval, and the FDA still rejected it.