Watch Out For Extreme Volatility In Lipocine On Tuesday

On Tuesday, the FDA will announce its decision on whether to approve Lipocine Inc LPCN's drug Tlando, and investors can expect a massive move in the stock either way as the company has invested considerable resources in production of the drug.

Tlando would be the first oral treatment for low testosterone and hypogonadism, but questions have arose about how the drug will be marketed and the safety of "lifestyle drugs" like this one.

In the past two weeks, research firm Slingshot Insights has conducted two phone calls with medical experts to discuss the chances of the drug's approval and its market approval.

One of the experts was skeptical the drug could gain traction, saying Lipocine would have to market directly to consumers, and that men typically "aren't good pill takers." It will also be a challenge to usurp traditional gels that have a reputation for working.

It was also noted that two of the subjects in a Tlando study had testosterone levels higher than FDA guidelines, so the FDA will have to account for that in their ruling.

The decision could lead to some reaction in Endo International ENDP and AbbVie Inc ABBV, which both produce testoerone drugs of their own. 

Check out the full transcript of the calls here.