NEW YORK (TheStreet) -- Outside advisers of the FDA have been meeting all day Tuesday to discuss whether to approve ValeantPharmaceuticals (VRX) new drug, Brodalumab, for moderate to severe plaque psoriasis, CNBC's Meg Tirrell reported on "Closing Bell" today.
The advisory committee was originally worried about the safety of the drug as the original developer discontinued the development due to links of suicidal thoughts and behaviors, Tirrell said.
Valeant continued the development of the drug.
Outside advisers voted positively 18-0 on the safety and effectiveness of the drug, she said.
The amount of labeling needed to go around the drug to warn doctors of potential suicide risk is being discussed.
Fourteen out of 18 panel members voted that strict measures need to be put in place regarding labeling, she added.
"This is part of their pipeline strategy focusing on research and development," Tirrell said.
Wells Fargo analyst David Maris estimated $250 million in sales for this drug in 2020. However, he says there is a potential downside because most analysts have included the approval of the drug into models.
The FDA is set to make a decision on the approval of Brodalumab in November.
Shares of Valeant are trading up by 0.04% to $23.55 in after hours trading.
Separately, TheStreet Ratings team rated this stock as a "sell" with a ratings score of D. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: VRX