Apricus Biosciences Eyes New Record Lows After FDA Rejection

The FDA cited safety concerns in its latest rejection of APRI's erectile dysfunction cream

Feb 16, 2018 at 8:58 AM
facebook twitter linkedin

Shares of San Diego-based Apricus Biosciences Inc (NASDAQ:APRI) are getting hammered this morning, after the U.S. Food and Drug Administration (FDA) once again declined to approve its Vitaros erectile dysfunction cream. Regulators cited safety concerns regarding an ingredient in the drug known as DDAIP.HCI, and also pointed to "deficiencies related to Chemistry, Manufacturing and Control," per a company statement.

Apricus CEO Richard Pascoe said the company is "disappointed" with the outcome of the FDA review, and expects to provide an update on the drug's future prospects in early March. Vitaros is already widely available outside the U.S. market, including Mexico, Canada, and throughout Europe.

APRI has tanked more than 73% in electronic trading, after settling Thursday's session at $3.19. The pre-market drop has Apricus shares trading south of the $1 mark, and on pace to slice through recent support at their 20-day, 40-day, and 80-day moving averages. In fact, the drug stock is at risk of setting a new all-time low, with the equity hovering just below last May's nadir of $0.86 in electronic action.

Short sellers will likely be pleased with APRI's early bearish momentum. Short interest on the stock ramped up by 13.4% during the past two reporting periods, and now accounts for 7.6% of the stock's available float. Of course, with the shares down so drastically in pre-market trading, short selling is likely to be restricted today -- and if any of these bears decide to take profits, the resulting buying pressure could help APRI find a floor.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners