Biotech companies often spend years—and millions of dollars—to develop a drug they hope will make it to market. If the day comes when their medicine finally gets regulatory approval, it is usually a cause for celebration by management and employees. In recent weeks, three closely watched Food and Drug Administration decisions came in positive for the companies—followed by their stocks going negative. For both BioMarin Pharmaceutical’s Roctavian for hemophilia A and Sarepta Therapeutics’ Elevidys for Duchenne muscular dystrophy, approval came after an arduous regulatory process. These days, when executives and scientists pop the bubbly, investors should exercise caution before joining the party.

Source: Wall Street Journal July 11, 2023 15:29 UTC