Schering-Plough (SGP) NewsBite - FDA Rejects SGP Anesthesia Drug

Friday, August 01, 2008 11:05 AM EDT

Schering-Plough Corp. (SGP) opened at 19.26. So far today, the stock has hit a low of 19.25 and a high of 19.44. SGP is now trading at 19.35, down 1.73 (-8.98%).The stock hit its 52 week high of 33.40 in October and set its 52 week low of 13.83 in May. SGP fell during the second half of 2007, but has been stronger for the past few months. Schering-Plough shares have been plunging after U.S. regulators had rejected Bridion, its drug to reverse the effects of anesthesia. The U.S. Food and Drug Administration issued a "not-approvable" letter for the injectable medicine, citing concerns primarily related to "hypersensitivity/allergic reactions" to the product. Technical indicators for the stock are bullish but slightly deteriorating while S&P gives SGP a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a September bear-call credit spread above the $22.50 range. SGP stock could rise up to 16.3% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]

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