Sesen Bio (NASDAQ:SESN) down 79% in a week after the US FDA told the company that it would not be approving its BLA for Vicineum, the company’s bladder cancer treatment. The sell-off experienced following the news made sense since Vicineum is part of every pipeline program of the company, combination therapy or alone. Usually, investors overreact to negative or positive development.
However, the stock seems to be bouncing back, which may be attributed to the FDA’s notice is not the end of the drug. Instead, the agency recommended more information that might support approval of the treatment.
The recommendation from the FDA is encouraging as the company is planning to meet the regulator to discuss Vicineum as a fresh. Therefore, it feels like not a much-lost cause. Moreover, considering the low share prices, investors should be keen that any possible upside could outweigh likely modest losses should revised Vicineum BLA fall through. So, in the coming weeks, SESN is worth watching.