A lot of everyday investors recently lost a bundle betting that the Food and Drug Administration would approve an experimental drug from Orphazyme (NASDAQ: ORPH). There were reasons to suspect arimoclomol might earn approval to treat a rare life-threatening disease. There were also plenty of reasons to keep your portfolio far away from Orphazyme's attempt to earn approval for its first drug.
Shares of Orphazyme (NASDAQ: ORPH), a clinical-stage biopharmaceutical company, are getting hammered after the Food and Drug Administration (FDA) refused to approve an application for the company's lead candidate. The FDA began reviewing an application for Orphazyme's lead candidate arimoclomol last September as a potential treatment for a rare but life-threatening disease called Neimann-Pick Disease Type-C (NPC).
By Dhirendra Tripathi