Last but certainly not least, the most recent dose of approved-drug pain was doled out by Discovery Laboratories (NASDAQ:DSCO).
I saved the best for last for a reason: I fear what happened with Discovery Labs is most likely what’s apt to happen with Arena. The stock was going hog wild leading up to the March 6 approval of Surfaxin, for the treatment of infant respiratory distress syndrome. The stock opened even higher the next trading day, but it started to move lower that same day (and even closed at the low that day). A month later, it had lost 50% of its value.
Nobody who bought into the stock after the approval has made any money on their trade, but it was all the rage at the time — kind of like Arena is now.