Interesting opportunity here. Usually these plays are good for a nice bounce even when data is bad. However there is some debate over how bad this actually is.
Here's a seeking alpha article from the 21st.http://seekingalpha.com/instablog/39...l?source=kizur
Bloomberg reported that "a panel of outside advisers to the FDA voted against recommending the drug for approval, citing concerns about tumors seen in rats in early-stage testing of the drug. … Of particular concern was the increase of mammary tumors in rats treated with lorcaserin, the committee said.
According to the FDA brief, “The mammary tumors are attributable to increased prolactin, a mechanism peculiar to the rat
Anyways, the author concludes with this.
The FDA owes the public a commitment to competent scientific evaluation in its drug-approval decisions. It should act consistently with its prior scientific findings and industry guidance, promptly overrule the lorcaserin panel's mistaken vote, and set the record straight on lorcaserin’s cancer safety findings.
So what to make of all of all of this? Who knows, but rumors could turn this into a spectacular bounce play. Huge battle going on right now with the sellers but finally some strong support on the bid. I have no position but watching closely.