LOM urges buy on weakness in Theratechnologies

Theratechnologies (TSX:TH) has released new dates for the final FDA review and decision on approval of its drug tesamorelin, which should clear uncertainty surrounding the stock, Loewen, Ondaatje, McCutcheon says in a new report.

“Should downward pressure occur in reaction to the delay, we believe this would present investors with a buying opportunity,” writes analyst Connie Chen.  The stock has slipped one cent to $4.66 on Thursday morning.

In a statement, Theratechnologies said the FDA’s advisory committee will now review tesamorelin on May 27, 2010, with a final FDA decision set for July 27, 2010.  “The postponement of the advisory committee meeting and FDA action date by three-to-four months is, in our view, relatively minor,” Ms. Chen added.

The advisory committee previously delayed its review, citing “administrative reasons.”