The drug stock is heavily shorted
The shares of Pain Therapeutics, Inc. (NASDAQ:PTIE) are trading up 5.6% at $1.21, after the biopharm said it is appealing the Food and Drug Administration's (FDA) decision on its pain drug, Remoxy. Back in August, the regulatory agency failed to approve Remoxy, after an advisory panel voted overwhelmingly against the treatment, citing potential abuse risks. A meeting date between the two has been set for Thursday, Jan. 31, 2019.
It's been a rough stretch for PTIE stock since that late-June FDA advisory panel ruling. Since gapping more than 71% lower on June 27, the equity has been stuck churning in penny-stock territory, with the $2.80 region -- home to its post bear-gap highs -- serving as stiff resistance.
Short sellers have been in the driver's seat throughout these technical troubles. Short interest has nearly quadrupled since mid-June. Plus, the 2.5 million PTIE shares currently sold short represents nearly 17% of the stock's available float.