ORPH - Orphazyme plunges as hype-driven rally unravels after FDA decision

JHVEPhoto/iStock Editorial via Getty Images Danish biotech Orphazyme ([[ORPH]] -43.0%) has extended the pre-market losses after the FDA decision not to grant the approval for Arimoclomol the company’s experimental therapy for rare genetic disease Niemann-Pick Disease Type C ((NPC)). CytRx ([[CYTR]] -57.1%) the developer of the treatment has also lost more than half of its value as it was entitled to receive $100M in milestone payments and single-digit royalties subject to FDA approval for the treatment and its subsequent commercialization. Just over a week ago, Orphazyme gained nearly 1,000% in value ahead of the FDA action data on Arimoclomol prompting the company to issue a clarification later saying it was not aware of any reason for such volatility. It is “game-over” who bet on Orphazyme to gain following FDA approval, Bloomberg quoted Per Hansen, an investment economist at retail broker Nordnet as saying. Even if the FDA greenlighted the therapy, “it wouldn’t at

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Orphazyme plunges as hype-driven rally unravels after FDA decision