Westminster, Co. ( TheStreet) -- Allos Therapeutics ( ALTH) shares are down 4% to 5% today, despite yesterday's 10-4 vote by an FDA advisory panel to recommend approval of the company's lymphoma drug Folotyn. That's not exactly the reaction Allos bulls were hoping for, but the panel was contentious, which surely has some folks worried that the FDA won't follow through with an approval on Sept. 24. I don't happen to share that belief. Has the FDA, in recent times, gone against the recommendation of a cancer drug advisory panel? I don't think so. Some might say Dendreon ( DNDN) fits that description, but Provenge was reviewed by a different committee and division of the FDA. After that, the chatter I hear today is that Allos was priced for perfection going into yesterday's meeting -- i.e. Allos is already fairly valued; the contentious nature of the advisory panel will dampen doctor's enthusiasm for Folotyn; the commercial market for peripheral T-cell lymphoma (PTCL) is tiny; Allos will face competition soon, perhaps from privately held Gloucester Pharmaceuticals, which also had a lymphoma drug recommended for approval yesterday. Once Folotyn is approved, no doctor will remember, or care, that some cancer expert on a panel argued that the drug didn't work so well (especially since that was the losing argument). Patients with PTCL who have nothing else to treat their disease are certainly not going to care. Folotyn is going to be approved, and when it does, it will be used. Sales in the U.S. could top $250 million to $300 million. Upside comes from PTCL sales in Europe and Asia as well as the potential for future use in other cancer types. Let's not forget that Folotyn is an un-partnered cancer drug asset well on its way to approval. That's a rare and in-demand commodity these days.
Another Osiris delay? I guess we shouldn't be surprised. And Mills' assurance to the sell-side community isn't helping the stock recover. It's still down 17%.
Endo said FDA has not asked the company for any new clinical trials or data on the product.