This week, I discussed some trading thoughts on Arena Pharmaceuticals (NASDAQ:ARNA) as its weight-loss drug lorcaserin approaches its D-Day with the FDA.
Perhaps you read it. Maybe you even read it and then lined up with pitchforks in hand to skewer me. That’s fine; I’m pretty thick-skinned.
The heated discussion did get me thinking, however. Maybe I could have made my point by showing you how mistimed stock trades based solely on a drug’s approval are nothing new — it’s a reckless pattern traders repeat over and over again. They just switch the tickers out.
Don’t believe it happens? Then buckle up, ‘cause I’m about to show you five high-profile drug approvals that ended up being disastrous for investors that decided to buy into the stock on or shortly after the approval day.
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