US FDA declines to approve Scholar Rock's muscle weakness drug
1. FDA declined approval for Scholar Rock's drug due to manufacturing issues. 2. Third-party facility problems hindered drug approval for a rare disease.
FAQ
Why Very Bearish?
Historically, FDA rejections have led to significant stock price declines. Similar cases saw drops up to 30% immediately after such news.
How important is it?
The FDA's decision could greatly affect investor confidence and future company prospects.
Why Short Term?
Initial reactions to FDA news generally impact stock prices quickly; recovery may take longer.