Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biotechnology company Optimer Pharmaceuticals climbed 13% today after preliminary 2012 sales for its diarrhea drug Dificid impressed Wall Street.
So what: The stock has slumped in recent months on concerns over sluggish Dificid sales, but today's preliminary 2012 numbers -- sales in the U.S. and Canada totaling $74.4 million versus $21.3 million in the year-ago period -- suggest that management's turnaround initiatives are taking hold. In October, Optimer announced a 25% price cut on Dificid to help boost its adoption rate, and it looks like hospitals are indeed biting.
Now what: Expect the positive sales momentum to continue. "We believe the early response to our new strategy is very encouraging," President and CEO Pedro Lichtinger said in a statement. "We are particularly encouraged by increased DIFICID use in hospitals that our sales force is targeting, and by the number of hospitals that are initiating a review of DIFICID's formulary position."
So while Optimer remains too speculative for this Fool, more aggressive growth seekers might want to take a closer look.
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The article Why Optimer Pharmaceuticals Shares Popped originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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