Egalet Shareholders Worried About Limited Use For Newly Approved ARYMO ER

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Egalet Corporation EGLT shares are trading lower by $1.50 (20 percent) at $6.88 in Tuesday's session.

The issue soared to $10.00 in Monday's session after the company received regulatory approval for ARYMO ER for pain management. The issue backed off that high to end Monday's session at $8.38.

However, the FDA stated that the drug should only be prescribed when all other treatment options have been explored. The reason for that being the FDA is concerned that opiod abuse has become a major problem in the US and they have been emphasizing drugs that aren't as addictive in nature.

After a lower open, it rallied only a penny to $7.36 before resuming its move lower. So far, the ensuing decline has $6.13 and it has rebounded into the upper $6.00 handle. That low comes in just above its November 9 low ($5.81).

The issue is attempting to avoid its first close under $7.00 since December 1, when it ended that session at $6.92.

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