When the Markets Are Wrong
A CCXI Case Study
ChemoCentryx (CCXI) is a Phase 3 biotech that applied for FDA approval for Avacopan in July 2020. FDA gave an initial PDUFA date of July 7, 2021. Here is CCXI's chart from Oct 2019 to Oct 4, 2021.
The price was trending up to almost $70 even before anticipated FDA approval on July 7, 2021. Then they were hit with an FDA notice outlining' several areas of concern' 2 months before PDUFA.
Here are the notable catalysts on the above chart:
Nov 2019 – Successful Phase 3 (Big jump in SP)
Sept 2020 – FDA sets PDUFA date of July 7, 2021 (No meaningful change in SP)
May 2021 – Split AdCom vote (9-9) where “several areas of concern” were noted (Big drop in SP)