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Athenex Inc (ATNX) dropped like a rock today.  55%. FDA rejected a product of theirs and saying they need more research.

Once it finishes bottoming out. Thinking about jumping on some shares. Someone want to give them a quick look and tell me how bad an idea this is?

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18 hours ago, PARROTHEAD said:

Athenex Inc (ATNX) dropped like a rock today.  55%. FDA rejected a product of theirs and saying they need more research.

Once it finishes bottoming out. Thinking about jumping on some shares. Someone want to give them a quick look and tell me how bad an idea this is?

risky business on buying more, but don't take advice from strangers on the internet.  They got a Complete Response Letter from the FDA which is bad news, not just because they need to spend multi-millions more and another 1-2 years of clinical trials...but also because they shouldn't have submitted a crappy package to the agency. Heads will roll within Athenex, because many times these mistakes are foreseeable and the CEO hinted at that in his comments.
So there may be further drops in stock price.
Its also possible that they meet with FDA and come out the other side with a less onerous requirement for further clinical trial work...but that's not the most likely outcome in most cases

Its a major whiff on several levels. On the science side, this was their flagship as they tried to use a new technology to make it easier/faster/better/less toxic to dose cancer patients with chemo therapy agents. But the response letter says the FDA was concerned about toxicity... when using their new technology. So that's a concern.
Good Luck

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