EPZM - Here's Why Epizyme Is Down on Good News Today
Shares of Epizyme (NASDAQ: EPZM) are down 14.7% at 1:59 p.m. EST after the biotech gained Food and Drug Administration approval for Tazverik in patients with epithelioid sarcoma.
You read that right, the FDA approved the drug and investors now think the company is worth less than it was yesterday.
This appears to be a simple case of selling the news because the approval was already priced in. Last month, an FDA advisory committee voted 11-0 in favor of the benefit-risk profile for Tazverik. While the agency doesn't have to follow the advice of its outside experts, the unanimous support made it pretty likely that an approval was coming.