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 Salix Pharmaceuticals
So what: While exact numbers weren't given, the "highly statistically significant" results increase the odds that the treatment will become a game-changer for Salix and especially for its much smaller partner Progenics Pharmaceuticals
Now what: I wouldn't be so quick to ride Salix's momentum. Management plans to submit the New Drug Application for oral Relistor in mid-2012, but judging from the stock's 65% price surge over just the past three months and its current P/E of 35, Mr. Market already seems to have baked in much of the upside. In fact, at the time of this writing, the stock is up only 5%, so investors might be starting to "sell the news."
Interested in more info on Salix? Add it to your watchlist.