Re: Procysbi Problem?
I think this has several parts. Obviously this info was known to some who acted on it ahead of tie. Not a huge impact on HZNP's bottom line, but it does (in the minds of some) possibly endanger the Procysbi franchise. Society will have to weigh whether the convenience (not having to wake children up from sleep to administer a smelly drug which makes them also smell) outweighs the 12 to 1 cost of the drug (although in total it is a miniscule amount with zilch impact on overall health care costs).
2nd is that some perceive (or would have you believe) that this challenge to Procysbi can be used as an excuse to bring prices down on other of the drug maker's franchises. You can read into the article that Canada had asked HZNP to do so voluntarily (next involuntarily?).
Next is that we are in a quiet period before earnings, and shorts can use the distortion of the Procysbi impact to make investors wonder if there is something else behind the drop (sell first and ask questions later) related to upcoming earnings call on May 8th. I personally think the CC will be a non-event with potential strong upside (e.g. announcement of NDA filing, K trial data release, accelerating K sales, etc.).
Overall this is a good test of the $24 support level (used to be resistance) and we never quite got there yet (stock turned around and went back up). Those who made a ton of money in HZNP since $9 might be profit taking - I think its a mistake and believe in much bigger things to come. Do your own DD and GLTA Longs.