APPA - A.P. Pharma, Inc. (NASDAQ)

[fav4medale]

It is heartening that the complete response letter does not question the efficacy of the treatment. It is a matter of time before it will be approved. My guess is 6 to 12 months and the price will be back up to $2 before approval and over $2 after approval. There may be some buying opportunities though in the next few months during periods of no news. I definitely would not be selling this point.

[kwiknuts]

APPA got a complete response letter from the FDA on friday and there are simply too many things on the list for APPA to fix for the stock not to go down hard to the pennies range.

If you are playing this stock just know that APPA has too much to overcome in the near term for there to be any value right now. Maybe in 2 years from now when all has been sorted out?

Time will tell.

[jacksprout86]

APPA got a complete response letter from the FDA on friday and there are simply too many things on the list for APPA to fix for the stock not to go down hard to the pennies range.

If you are playing this stock just know that APPA has too much to overcome in the near term for there to be any value right now. Maybe in 2 years from now when all has been sorted out?

Time will tell.

2 years? That might be overstating it a bit I think. The drug itself is basically approved, it's the "other" issues that need to be addressed. Assuming they are, the run up before a future approval date should exceed this past one,which at the minimum is 100% increase from current price. Assuming you have funds that can sit on the sidelines for awhile, this seems like a worthy risk to take. Question is what is a good entry point right now? Do you see it going up or down in the short term? My guess would be it has bottomed out, as only near term catalyst would be a partnership / acquisition, and most "what have you done for me yesterday types" have already left this stock. Thoughts?

2 years? That might be overstating it a bit I think. The drug itself is basically approved, it's the "other" issues that need to be addressed. Assuming they are, the run up before a future approval date should exceed this past one,which at the minimum is 100% increase from current price. Assuming you have funds that can sit on the sidelines for awhile, this seems like a worthy risk to take. Question is what is a good entry point right now? Do you see it going up or down in the short term? My guess would be it has bottomed out, as only near term catalyst would be a partnership / acquisition, and most "what have you done for me yesterday types" have already left this stock. Thoughts?

Just noticed you posted on 3-22, being a week later now, is it "safe" to say that since it has held steady in the 1+ range since that perhaps it has bottomed? I own quite a bit, and am looking to add more, just wondering what thoughts are for the short term price for a reentry point. TIA

[globalequitygroup]

I agree with your post in that it (APPA) is a good longer term play. Likely 12 - 18 months. Approval is also likely. However, They are low on cash. They stated in their earnings meeting that they had enough cash to take them through 2010. That was before the added expenses of these CRL items. They have no revenue generation at this point and the FDA will not approve until at least 2H 2011. So a dilution is imminent in my opinion. A partner is unlikely after a CRL. Be on the lookout for a potential offering which will drop the share price well below 1.00. Once that sell-off has captiulated...Thats your buy point.

GEG.