Shares of San Diego-based Apricus Biosciences Inc (NASDAQ:APRI) are getting hammered this morning, after the U.S. Food and Drug Administration (FDA) once again declined to approve its Vitaros erectile dysfunction cream. Regulators cited safety concerns regarding an ingredient in the drug known as DDAIP.HCI, and also pointed to "deficiencies related to Chemistry, Manufacturing and Control," per a company statement.
Apricus CEO Richard Pascoe said the company is "disappointed" with the outcome of the FDA review, and expects to provide an update on the drug's future prospects in early March. Vitaros is already widely available outside the U.S. market, including Mexico, Canada, and throughout Europe.
APRI has tanked more than 73% in electronic trading, after settling Thursday's session at $3.19. The pre-market drop has Apricus shares trading south of the $1 mark, and on pace to slice through recent support at their 20-day, 40-day, and 80-day moving averages. In fact, the drug stock is at risk of setting a new all-time low, with the equity hovering just below last May's nadir of $0.86 in electronic action.
Short sellers will likely be pleased with APRI's early bearish momentum. Short interest on the stock ramped up by 13.4% during the past two reporting periods, and now accounts for 7.6% of the stock's available float. Of course, with the shares down so drastically in pre-market trading, short selling is likely to be restricted today -- and if any of these bears decide to take profits, the resulting buying pressure could help APRI find a floor.