Why Fortress Biotech Stock Is Plunging Today
Shares of Fortress Biotech (NASDAQ:FBIO), a biopharmaceutical company, were down by 22.5% as of 12:26 p.m. EDT on Monday, after dropping by as much as 28.3% earlier in the day. These losses are a result of Avenue Therapeutics (NASDAQ:ATXI), a majority-owned subsidiary of Fortress Biotech, receiving a Complete Letter Response from the Food and Drug Administration rejecting its New Drug Application (NDA) for IV Tramadol. Shares of Avenue Therapeutics are down by more than 55% as of this writing.
In December 2019, Avenue Therapeutics submitted an NDA for IV Tramadol for the management of acute pain in patients who require an opioid. The FDA had no complaints regarding the efficacy of the medicine. But the agency argued that IV Tramadol "is not safe for the intended population," hence the Complete Letter Response rejecting the drug's application. A rejection at this time does not mean the drug has no chance of ever reaching the market.
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Source Fool.com
