The U.S. Food and Drug Administration has approved a new cholesterol treatment from Carlsbad’s Isis Pharmaceuticals (Nasdaq: ISIS) and its French partner Genzyme, clearing the path for Isis' first drug to reach market.
The drug, Kynamro, is an injectable drug designed to treat patients who are genetically predisposed to have high levels of LDL cholesterol, known as the "bad" cholesterol. The drug has been approved for use as an adjunct for other cholesterol-lowering medications.
Ironically, the approval came just two trading days after CNBC commentator Jim Cramer advised investors to sell the stock, which had a closing price of $13.46 on Friday.
"Let's stay away from Isis right now," Cramer said. "You can buy it cheaper later. There's going to be some disappointment."
The FDA announcement came after the end of the official trading day, but in after-hours trading, Isis share prices shot up $1.03, or 7.7 percent, to $14.41.
Isis will hold a conference call at 6:30 a.m. Pacific time on Wednesday -- half an hour before the market opens in New York -- to discuss the impact of the decision.
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