Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of drugmaker KV Pharmaceutical (NYSE: KV-A) surged higher than 25% in intraday trading after issuing impressive revenue projections, as well as a large preliminary order, for its preventative preterm birth treatment Makena.

So what: While KV noted that its first order for roughly 6,000 vials of Makena shouldn't be an indicator for future sales volume (it included special discounts related to the product's launch), investors are obviously impressed with the initial reception. Longer term, KV's market research indicates that Makena can generate sales of $104.6 million by fiscal 2013, with a launch price this March of $7,500 per vial.

Now what: I'd be cautious about riding the stock's monstrous momentum. KV's unbelievable 750% return since getting Makena approved last month, coupled with management's timely equity raise, has this worry wart a little concerned. Fellow Fool Sean Williams reminded us last week that "it takes time, money and a skilled sales team" to bring a new drug to market, so regardless of today's ultra-optimistic outlook, the stock seems to have gone way too far, way too fast.

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