High-risk, high-reward drug catalyst play on ASRT

Assertio therapeutics is slated to get an FDA ruling on its new drug application for cosyntropin depot by October 19. If the FDA approves the drug, the stock could move up significantly. Assertio has an 8.9/10 Equity StarMine Summary Score and is rated extremely undervalued by S&P Capital IQ. Despite relatively good earnings last quarter, the stock price is down due to a stock offering after the earnings report. Assertio also has a lot of exposure to litigation or regulation around opioids, because its most successful drug is an opiate. A new drug approval could shake the stock out of its lethargy and give it a really nice boost. Short interest in the stock is reasonably high, at 15% of float, which could contribute to a short squeeze. Of course, failure to get approval would send the stock tumbling.