Horizon Pharma, Inc. Drops as Investors Doubt Company's Marketing; Stock Down - 0.5325(8.44%) @ 10:06AM EDT
Horizon Pharma Inc. (HZNP), a maker of pain therapies, fell the most ever in New York trading as investors doubted the company’s ability to market its newly approved Rayos rheumatoid arthritis treatment. Horizon dropped 17 percent to $6.31 at the close in New York, its biggest decline since the stock started trading in July 2011. The shares of the Northbrook, Illinois-based company have risen 58 percent this year. The Food and Drug Administration cleared the first delayed- release, low-dose prednisone in Horizon’s Rayos, the company said in a statement yesterday. Investors may be betting that Horizon won’t be successful enough when it starts to sell the medicine or that the company may raise more money to build out its sales force, said Charles Duncan, an analyst with JMP Securities who recommends buying the stock.