Orphazyme: Meme stock slumps as genetic disorder drug fails to get FDA's nod (updated)

Strategic Partners A/S

18/06/2021 12:57

(Updates)
    ** Orphazyme's  ORPHA.CO  Copenhagen- as well as U.S. listed
 ORPH.O  shares sink after the Danish drugmaker's genetic
disorder drug candidate, arimoclomol, fails to get an approval
from the U.S. medical watchdog 
    ** The Food & Drug Administration issues a Complete Response
Letter requesting additional qualitative and quantitative
evidence for the drug's effectiveness  urn:newsml:reuters.com:*:nL2N2O00CG
    ** Orphazyme's Danish scrip dives 58%, while the U.S. stock
slumps more than 50%
    ** The FDA decision spurs ORPH into cutting its 2021
outlook; co says it needs to trim costs substantially
    ** "The situation is hopeless," says Nordnet Analyst Per
Hansen, adding FDA's approval of arimoclomol was expected
    ** Hansen says now Orphazyme has no money and no
documentable projects  
    ** It's "game over for 'meme speculation'" - Hansen,
referring to the stock's recent price frenzy
    ** On Friday, ORPH is the most discussed stock on
trading-focused social media site Stocktwits, where message
volume related to it jumps by a quarter 
    ** Oprhazyme became a 'meme stock' recently, swinging wildy
and more than doubling at one point in U.S. trade on Thursday,
ahead of FDA's decision  urn:newsml:reuters.com:*:nL3N2NY3OL
    ** The Copenhagen stock is on track for its worst day ever
with session's losses wiping off 2 bln crowns ($320 mln) from
the company's market capitalisation        
    
($1 = 6.2478 Danish crowns)

 (Reporting by Boleslaw Lasocki in Gdansk and Aaron Saldanha in
Bengaluru)
 ((boleslaw.lasocki@tr.com))