Courtesy of Benzinga.
The U.S. Food and Drug Administration approved Egalet Corp (NASDAQ: EGLT)’s ARYMO ER on Monday to expand the industry for opioid-based pain-management treatments. The announcement bodes well for Egalet, the shares of which responded with a 17-percent jump.
Trading was halted at 12:24.33 p.m. pending news. At the time of the freeze, shares rested at $9.12 following a day-opening price of $7.97, up 15.44 percent.
Prior to Monday, about 61 percent of the company’s shares had been shorted — a condition that may induce a short squeeze when trading resumes.
This activity follows a tumultuous year for Egalet investors.
In October, shares dropped 5 percent after the FDA delayed ARYMO ER’s Prescription Drug User Fee Act date and shook investor confidence. However, delays are typical in FDA opioid proceedings, and Cantor Fitzgerald analysts reiterated a company Buy rating at the time.
Egalet plans to launch the drug in the first quarter of 2017.
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