Shares of Eagle Pharmaceuticals (EGRX, Financial) fell after the FDA denied approval for the company’s lead drug, Ryanodex, for a new indication—exertional heat stroke (EHS). The drug is currently marketed for malignant hypothermia, and the company continues to conduct trials for other indications while holding further discussions with the FDA about the drug’s potential for EHS. The market appears to ascribe little value to any future indications, but we see the potential for upside if any are approved.
From First Eagle Fund of America third quarter 2017 shareholder commentary.
