Protalix BioTherapeutics Shares Got Crushed: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Protalix BioTherapeutics (ASE: PLX) fell as much as 22% in early trading after getting notice of a delay from the FDA.
So what: The FDA extended its goal date for approving taliglucerase alfa (say that ten times fast) by three months to May 1 of next year. The delay didn't come with a request for more data, but the market thought it was the end of the world in early trading, an overreaction that has corrected slightly as trading continued today.
Now what: The delay doesn't seem to indicate anything is wrong with the treatment for Gaucher disease, but it's not a great sign. This will push back potential cash flows from the treatment, which makes the treatment less valuable in present value terms. But the sell-off was a bit overdone this morning, and if you're looking to get into shares, I see this as a great opportunity to buy.
Interested in more info on Protalix BioTherapeutics? Add it to your watchlist byclicking here.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.