Why Kala Pharmaceuticals Stock Sank Today

Shares of Kala Pharmaceuticals (NASDAQ: KALA) were sinking 17.4% as of 3:30 p.m. EDT on Tuesday. The big drop came after the drugmaker announced FDA approval of Eysuvis for the short-term treatment of dry eye disease.

Aren't biotech stocks supposed to go up when they win FDA approval for a drug? That's what usually happens, but not this time.

Image source: Getty Images.

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Source Fool.com