In a recent Penny Stock Detectives article, editor Sasha Cekerevac asserts that when it comes to the pharmaceutical market sector.
(prHWY.com) July 31, 2012 - New York, NY -- In a recent Penny Stock Detectives article, editor Sasha Cekerevac asserts that when it comes to the pharmaceutical market sector, the development of new treatments is crucial for the continued growth of a company and the price appreciation of the stock.
Cekerevac notes that obtaining approval from the Food and Drug Administration (FDA) is no easy task,as each pharmaceutical company must meet the stringent requirements to be successful in this market sector.
"Achillion Pharmaceuticals is one of the more interesting pharmaceutical firms in that it has several drugs in its pipeline," believes Cekerevac. "The plurality of medicine in a firm's pipeline allows for less emphasis on any one drug, thus, in theory, increasing the probability that approval is possible."
On May 15, 2012, Achillion announced its approval for "Fast Track" designation from the FDA for its drug called "ACH-3102," Cekerevac reports. This speeds up the process of possible approval from the FDA, he explains. According to Cekerevac, the drug is currently in Phase 1 trials, and there is still quite a lot of work yet to go before the viability of this drug can be properly assessed. The drug is being used for chronic hepatitis C, a growing problem and one that many pharmaceutical companies are attempting to monetize, states Cekerevac. As the number of possible patients grows, the total market sector becomes that much more attractive to pharmaceutical companies, he reasons.
"More than 170 million people around the globe are estimated to be infected with hepatitis C, with over five million infected people in the U.S.," observes Cekerevac. "With the majority of infected people unaware, this market sector is a growing health problem, as the disease will lead to other serious health problems, such as liver cancer and liver failure, and possibly death. Pharmaceutical firms are moving fast to try to stop the spread, as there are few current treatments available."
As with most pharmaceutical stocks, the Penny Stock Detectives editor says that the progress of the approval process for new drugs drives the stock.
"Essentially in limbo, awaiting further results from trials, Achillion's stock has established a tight trading range," notes Cekerevac. "A breakout from this trading range will be the key to determining the next leg in the market for this pharmaceutical stock."
Cekerevac also points out that it is widely understood that the pharmaceutical market sector is extremely lucrative. If this pharmaceutical firm is able to monetize this market sector with a successful approval by the FDA, Cekerevac suggests the end result will be an extremely positive tone for the stock price.
Until further information is released regarding the results of the pharmaceutical trials, he notes that investors will have to simply wait and see. Cekerevac concludes by suggesting investors watch the stock for a break from its tight trading range as an early indication.To see the full article and to learn more about Penny Stock Detectives, visit
www.pennystockdetectives.com.
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