Shares of Avanir slipped 7% Tuesday, following an earnings release that saw revenue from the recently approved Nuedexta rake in only $505,000.
Nuedexta, a treatment for pseudobulbar affect (PBA), which is a condition characterized by spontaneous fits of uncontrollable laughing and/or crying, was approved last year and has been on the market since February.
As a result of the earnings release, various slick-worded headlines have hit the wires, headlines from blog sties that almost doom Avanir to failure, while some analysts have also stutter-stepped, tap-danced and backed off previous projections.
It's my opinion, however, that the immediate reaction to the underwhelming sales of a product that has been on the market for significantly less than one full quarter is just a bit overblown, and may have more to do with the rather significant percentage of shares short on the stock than the actual pattern of Nuedexta sales - if you can call two months enough time to establish a pattern.
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