Macimorelin, an oral solution from AEterna Zentaris Inc. (NASDAQ:AEZS) has obtained marketing authorization from the European Medicines Agency (EMA). The authorization followed a positive opinion from the Committee for Medicinal Products for Human Use (CHMP) adopted earlier on. Results from clinical studies, which demonstrated the safety of the macimorelin played a crucial role in conviction. However, the stock prices may crash and here’s why:

The ghrelin agonist medical product is primarily for diagnosing adult growth hormone deficiency (AGHD). It is available in 60 mg granules of oral solution, which makes it very simple to administer. It is not comparable to other methods of testing for insulin-induced hypoglycemia. Its role is to arouse the release of growth hormone by activating growth hormone secretagogue receptors.

The EMA approval of macimorelin validates the value of the product

The various cases of growth hormone deficiency (GHD) triggered the need for research on macimorelin. The condition may occur at the onset of childhood or in adulthood. Estimates indicate that close to 35,000 adults within the population of 510 million of the European community could be afflicted with GHD.

The move by the EMA is a clear indication that macimorelin is doing well. It will be a solution to many and will also help in creating value for the company’s shareholders. The principal investigator for macimorelin, Dr. Christian Strasburger, says, “Both patients and healthcare-providers will undoubtedly welcome the general availability of macimorelin, and I believe that macimorelin will become the generally accepted new reference procedure for diagnosing adult growth hormone deficiency.”

However, despite the validation of the product, there are notable side effects. They include feeling hot, headache, dizziness, diarrhea and fatigue among others.

Aeterna Zentaris has settled its scores with David Dodd and Philip Theodore

The biopharmaceutical company has made peace with David Dodd and Philip Theodore. The two who are former officers of the company had moved to court filing litigations in South Carolina and Canada respectively. Nonetheless, they have pulled back following the company’s agreement to settle a payment amounting to $775,000 to Mr. Dodd. Meanwhile, Aeterna Zentaris continue to explore the growth and expansion of its activities.

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