Shares of Horizon Therapeutics (NASDAQ: HZNP) closed more than 4% higher on Monday after an U.S. Food and Drug Administration advisory committee voted in support of the company's treatment for thyroid eye disease, and the stock extended gains by more than 2% over the next two trading sessions. The FDA's Dermatologic and Ophthalmic Drugs Advisory Committee concluded that potential benefits of teprotumumab outweighed possible treatment risks.
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But a long-term rally may be limited, at least for now. The FDA has until March 8 to issue its decision on the treatment, leaving investors plenty of time to speculate, wonder, and buy or sell shares. Of course, the committee's vote for teprotumumab is a strong positive indicator, and the FDA does take such a recommendation into consideration. That said, the vote doesn't guarantee the drug's approval.