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Since FDA decisions have great impact on stock prices, is there site for free information about FDA schedule?
Since FDA's approval or disapproval of the new drugs of the biotechnology and pharmaceutical companies following their Phase II or III study has usually a great impact on respective stock prices and options, is there site for free information about FDA schedule?
Many stock analysts in newsletter articles inform for forthcoming FDA decisions for one or another medicine.What is their source of information and is it possible to be used by the individual investors?
Answers
957 points
CUWu answered one year ago …
Well, the thing to really remember is that it isn't the "FDA" who really approves or disapproves of a drug. The trials that the drug goes through are what decides if the drug is market ready.
So basically, the FDA sets out guidelines:
1. Drug has to have a statistically significant impact on the disease/virus its supposed to treat.
2. It has to meet a minimum level of safety.
So it's really on a case-by-case basis and requires a lot of homework.
Biotechinsight.com is a great biotech newsletter if you're interested.
4085 points
EthanR answered one year ago …
Theodore, simply knowing when an FDA ruling may be taking place, doesn't tell you whether or not to go long or short on the stock. Most biotechs and small company pharms. are extremely volatile and an FDA ruling, pro or con, can send the stock soaring or crashing in a single day. So one would have to really hedge their position well to avoid being on the wrong side of the trade and losing a lot of money.
I prefer to wait for the pull back, following the announcement and intial move, whether it is higher or lower. Then I will enter a trade position in the same direction as the initial move. So for example, a favorable ruling sends the stock much higher. After a few days, it retraces perhaps 50% or more of the up move. That is when I enter a buy order.
