A lot of everyday investors recently lost a bundle betting that the Food and Drug Administration would approve an experimental drug from Orphazyme (NASDAQ: ORPH) . There were reasons to suspect arimoclomol might earn approval to treat a rare life-threatening disease. There were also plenty of reasons to keep your portfolio far away from Orphazyme's attempt to earn approval for its first drug.
On June 18, Orphazyme told investors that instead of approving arimoclomol, the FDA sent the company a complete response letter asking for more information. Crusty old biopharmaceutical industry analysts who have seen dozens of companies like Orphazyme follow similar paths weren't surprised, but a lot of investors were shocked.
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This Is How You Could Have Anticipated Orphazyme's Implosion