Here’s Why TESARO Inc (TSRO) Fell Sharply

Shares of TESARO Inc (NASDAQ:TSRO) are off almost 10% in afternoon trading on Thursday after the company announced the wholesale cost of 30 pills of ZEJULA 200mg at around $9833 per month. When incorporating the recommended dose of 300mg, that translates to a price of around $14,700 per month. The FDA gave the thumbs up to Zejula, which is approved for the maintenance treatment of adult patients with certain types of recurrent epithelial ovarian, fallopian tube or primary peritoneal cancer, in March and many investors have high expectations. Due to various fees, the net price of the drug is somewhat lower than what many on Wall Street were expecting. In part due to the softer pricing, several analysts downgraded TESARO Inc (NASDAQ:TSRO). Seamus Fernandez of Leerink lowered his target to $158 from $186, while Robyn Karnauskas of Citi cut her target to $216 from $232. The downgrades likely caused a lot of the selling.

What Does The Smart Money Sentiment Say?

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The smart money wasn’t super optimistic on TESARO in Q4. Of the 742 funds we track, 30 reported having a bullish position in TESARO Inc (NASDAQ:TSRO) at the end of December, down 6 funds from the previous quarter.

The Bottom Line

TESARO Inc (NASDAQ:TSRO) shares are down due to Wall Street downgrades after the company priced ZEJULA at a lower-than-expected level. For those of you interested, read ‘10 Countries That Export The Most Drugs in the World‘.

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