For some drugs, safety is everything.
Investors must have realized that "safe enough to continue" isn't the same as "safe enough to be approved" because it's given back all its gains and then some.
Still, the point remains: Safety is extremely important to LibiGel's success. In fact, the whole purpose of the clinical trial is to measure the cardiovascular and breast cancer risk in patients taking LibiGel.
There aren't any drugs approved for treating female sexual dysfunction, but that's not for lack of trying. Procter & Gamble
Female sexual dysfunction drugs are held to considerably higher safety standards than other drugs considering the problem that it treats isn't a life-or-death issue -- even on Valentine's Day. I'm not sure that erectile dysfunction drugs -- Pfizer's
Even if LibiGel doesn't increase the risk of cardiovascular events and breast cancer, investors have to be prepared for the FDA to find something else wrong with the drug. The obesity drugs being developed by Arena Pharmaceuticals
At a market cap of less than $200 million, Biosante has a chance to get turned on if the FDA were to approve LibiGel next year -- the potential market for female sexual dysfunction is estimated at $2 billion -- but investors should be prepared for an extended cuddling session rather than a quickie approval.
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Pfizer is a Motley Fool Inside Value recommendation. GlaxoSmithKline is a Motley Fool Global Gains selection. Procter & Gamble is a Motley Fool Income Investor recommendation. The Fool owns shares of GlaxoSmithKline. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.