Discovery Laboratories (DSCO) gains on Surfaxin approval : Discovery Laboratories Inc. (NASDAQ: DSCO) gained as much as 44% yesterday (Wednesday) before closing up 9%, or $0.33, to $4.08 after FDA approved Surfaxin lucinactant late Tuesday to prevent respiratory distress syndrome in premature infants. Discovery plans to launch the humanized lung surfactant in the U.S. late this year. We can't recall if this is the fourth or fifth time that Surfaxin went up for approval but Kudos to the DSCO team for hanging in there to get it done.
Conclusion: Discovery (DSCO) is worth watching now. While this is a niche product, there is a real market opportunity in prematurely born infants and we believe with the great need that specialty and big pharma has DSCO could be acquired at a premium, so we would be inclined to own shares and see what happens.
