Shares of UroGen Pharma (NASDAQ: URGN) fell over 19% on Wednesday and another 12% on Thursday after a short-seller published an article on Seeking Alpha arguing that the company was overvalued at a market cap of $730 million. There were two main arguments.
First, the short-seller thinks the company's lead drug candidate, UGN-101, is only likely to earn marketing approval for a part of the overall patient population it aims to treat. Second, the company's second leading drug candidate, UGN-102, will not be able to replace the standard-of-care, first-line treatment option.
Considering shares of the clinical-stage pharma have fallen 33% in the last five days, are the shorts right about UroGen Pharma? Here's what investors need to know.