The panic and turbulence reigning the market at the moment has capped the run-up normally preceding a PDUFA action date. In Questcor Pharmaceuticals' case, you can the many spikes from the $10 mark that are rapidly being pulled back. This signifies the uneasiness of investors even with the positive outcome from the FDA's advisory meeting in early May. While the stagnate price lures many buyers to enter at the last minute, hesitant early birds, many of whom already sitting on ~50% gain (those entered ~3 mo. in advance) are reluctant to see their profit deteriorate due to the current market turmoil, and therefore attempt to unload their cargo a little sooner. As a result of the strong opposing forces, QCOR's shares have been seesawing in the week leading up to the June 11 PDUFA.
As we're merely 2 days away from hearing FDA's decision on QCOR's drug, it's going to be fascinating to see how the story unfolds in this unique market environment. I would not hold any position past tomorrow's closing bell, anticipating a robust and rapid sell-off post Friday's announcement regardless of whether or not QCOR sees an approval or a complete response letter.
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