Is Aerie Pharmaceuticals a Buy?

Aerie Pharmaceuticals (NASDAQ: AERI) thinks it has something special in its two commercialized drug products, which utilize a novel mechanism of action to relieve the underlying cause of glaucoma. Now if only its investors could find relief.

Shares of the eye-care specialist peaked at over $72 in July 2018, but the pharmaceutical stock has plunged nearly 70% since then following a slower-than-expected market launch for its first drug, Rhopressa. Management even had to walk back its original full-year 2019 revenue guidance to account for sluggish prescription growth.

But there are signs Wall Street may have overreacted just a bit. Recently published numbers suggest pharmacies are building inventory of the company's second drug, Rocklatan, which launched in May 2019 and uses two active pharmaceutical ingredients, including the one that Rhopressa contains. Considering the two drugs have combined peak annual sales potential of over $1 billion, is Aerie Pharmaceuticals a buy? 

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Source Fool.com