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What: Shares of drug developer Pain Therapeutics
So what: In a press release this morning, Pain Therapeutics provided investors with some more details about the Food and Drug Administration's denial to approve the company's pain drug, Remoxy. The company said that at issue were inconsistencies in the release performance of the drug during testing. Pain Therapeutics said that at this point it can't tell whether it's an issue with the testing method or the manufacturing, but what it does seem to know is that working out the kinks will take at least a year and perhaps "significantly longer."
Now what: When it comes to getting a new drug approved, time is most definitely money. Even if we assume that Remoxy does get approved a year from now, the income from the drug will be worth less to investors today because of the wait. Of course, it's not worth so much less that it justifies the shellacking that the stock has taken. That skydive may suggest that investors have serious concerns that Remoxy gets approved at all. The drug is being developed in partnership with Pfizer
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