Please ensure Javascript is enabled for purposes of website accessibility

A Painless Advisory Panel Meeting

By Brian Orelli, PhD - Updated Apr 5, 2017 at 8:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Genzyme sails through unscathed.

Looks like Genzyme (NASDAQ:GENZ) might be getting a Christmas present from the Food and Drug Administration. An FDA advisory panel yesterday unanimously recommended approval for Genzyme's osteoarthritis pain drug Synvisc-One.

The drug, already approved for sale in European and Southeast Asian countries, is a refinement of the existing Synvisc, requiring only one injection instead of the original's three. Both versions collectively brought in only $68 million, or about 6% of Genzyme's revenue, last quarter, so an approval likely won't have a huge effect on Genzyme's earnings. Still, requiring only a single trip to the doctor's office, instead of three, should help Genzyme grab a slightly greater share of a market crowded with rival treatments, including Pfizer's (NYSE:PFE) Celebrex, Wyeth's (NYSE:WYE) Advil, and Johnson & Johnson's (NYSE:JNJ) Motrin.

It should be noted that Genzyme isn't guaranteed a fat present from the FDA before its PDUFA date on Dec. 23. Plenty of companies have gotten positive recommendations from advisory panels without a subsequent approval -- Dendreon (NASDAQ:DNDN), anyone? Then again, I can't think of a time when a unanimous recommendation failed to lead to a drug's approval, so Genzyme's investors are probably safe to expect good news. Just don't be surprised if that gift is delayed; the FDA has been known to be a little late to the party.

Between Synvisc-One and bone marrow transplant drug Mozobil, which should also receive a decision from the FDA this month, Genzyme might have a pretty good December. With a P/E topping 40, the pharmaceutical hardly looks cheap right now -- especially in this market -- but high-growth stocks hardly ever do.

Motley Fool Rule Breakers is always on the hunt for hot drug stocks and other cutting-edge picks. See all of our latest discoveries with a free 30-day trial subscription.

Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Pfizer and Johnson & Johnson are Income Investor recommendations. Pfizer is also an Inside Value selection and a Motley Fool holding. The Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Johnson & Johnson Stock Quote
Johnson & Johnson
JNJ
$170.67 (0.29%) $0.49
Pfizer Inc. Stock Quote
Pfizer Inc.
PFE
$49.95 (0.34%) $0.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
373%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/10/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.