Shares of Discovery Laboratories Inc. (DSCO) surged to their highest level in more than a year Wednesday after the company received long-awaited regulatory approval for its infant respiratory drug Surfaxin, but the stock retreated as investors learned of the costs involved in marketing the treatment.
The biotechnology company plans to launch Surfaxin as well as recently approved Afectair, a device for delivering aerosolized medicine to ventilated patients, at the tail end of 2012. The annual investment cost to market and sell the two products is between $12 million and $13 million, Discovery Labs said.
Shares of Discovery Labs opened Wednesday up more than 30%, reaching $5.39, their highest point since December 2010; however, the stock has since pared its gains and is now 21% higher at $4.55.
Source: The Wall Street Journal
