Avalon has made some good calls lately, but it sure looks like they blew this one on QLTI. According to Bloomberg, they issued their sell on QLTI last week:
Novartis, QLT Seek Panel Backing on Eye Drug Visudyne (Update1)
Bethesda, Maryland, Nov. 17 (Bloomberg) <snip>
Still, not all analysts believe that the panel will be easy sailing for Novartis and QLT. Avalon Research Group, an equity research firm, last week sent a note to clients recommending that they reduce their QLT holdings on concerns that the data on effectiveness may not be compelling enough for a favorable panel recommendation. ``We believe that QLT breezing through' the FDA panel hearing is ``anything but assured,' Avalon's note said.
<snip>
As we all know, Visudyne got that favorable panel recommendation from the FDA yesterday evening. In the piece, Avalon goes on to say something to the effect that "even if Visudyne is approved, we're not sure the sales will be as big as they think," but I'm sure that's little comfort to Avalonians who sold QLTI last week (QLTI trading range last week was about 32 - 38, today was up about 22% to close around 46). Strikes me that some of that buying must have been some folks covering... |
