FDA questions efficacy of testosterone and whether risks really do exist, page-13

Some point from recent BP research on the FDA note:

The two key questions the Advisory Committee has been asked to address are as
follows:
 What is the appropriate patient population for whom TRT should be indicated;
and
 Whether the totality of the data indicates a cardiovascular safety signal
associated with the use of testosterone therapy.

So why is the stock down 20%
Following the release of the background documents referred to above, ACR stock
price has declined 20%. Media coverage of these documents has focussed on the
questioning by the FDA as to whether the long term use of TRT actually creates a
benefit, particularly in age related hypogonadism.
Ironically, this is a vastly different issue from the original question marks relating to
long term use of TRT and cardio vascular safety raised earlier this year. It was this
later issue that led to the drug safety communication. The briefing document appears
to acknowledge there is insufficient evidence regarding increased cardiovascular risk
associated with Testosterone therapy.

We retain our BUY Recommendation and price target of $2.26.