>Achaogen ($AKAO) and Paratek ($PRTK) both had NDAs approved for novel antibiotics and saw their stock prices drop sharply in response to the news, as investors

>Achaogen ($AKAO) and Paratek ($PRTK) both had NDAs approved for novel antibiotics and saw their stock prices drop sharply in response to the news, as investors anticipated all those pesky expenses related to commercialization. I was around for most of Achaogen's implosion. Some key points not mentioned in this blog post: 1.) In the ~12 months leading up to FDA approval, Achaogen started burning their capital at a rate that was, frankly, insane. Financial decision-makers were definitely counting their chickens before they hatched, and this ultimately seems to have resulted in massive cuts to opex (e.g. sales positions) that snowballed into abysmal revenue once Zemdri hit the market. 2.) The FDA approved Achaogen's product, Zemdri, indication for complex UTIs (cUTI), but not for bloodstream infections (BSI). The latter indication is much more lucrative. My personal opinion is that this factor alone wasn't responsible for the poor sales numbers, but it was certainly a huge contributor to the problem.