orphan

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Related to orphan products: Orphan Drug Act

Orphan Stock

A stock that is not often tracked by analysts. This may be because it is not very well known or because it belongs to an industry that is generally performing poorly. As a result these stocks have low demand and often a low price. Some value investors recommend buying orphan stocks because they could be undervalued. However, because demand is low, orphan stocks have low trading volume and a small change in demand may result in volatility in price. An orphan stock is also called a wallflower.

orphan

Of or relating to a security that is not regularly covered by security analysts. An orphan security is likely to attract little investor interest and to sell at a relatively low price compared with other securities of the same type. For example, an orphan stock is likely to sell at a low price-earnings ratio and an orphan bond will offer a relatively high yield.
Case Study Many individuals in the financial community believe investment banking firms have an obligation to provide continuing research coverage of companies they take public. Research coverage increases a firm's exposure to the investment community, an important benefit for the firm and its shareholders, especially investors who acquired stock during the initial public offering. Dropping coverage of a small company and causing the stock to become an orphan can have a devastating effect on the stock's liquidity and market price. In some instances coverage is discontinued because of a loss of investor interest, in which case any remaining investor interest can virtually disappear. Orphan stocks became more common in the tech stock meltdown of 2000-01. In October 2001 Credit Suisse First Boston dropped coverage of Evolve Software, a software and fiber optics company that CSFB took public for $9 a share in August 2000. Although the stock quickly tripled in price following the initial public offering, it soon got caught in the downdraft of the bear market for technology stocks and had declined to approximately 25¢ per share by the time CSFB dropped its coverage of the firm. The analyst at Credit Suisse First Boston remained bullish on the stock until coverage was suddenly dropped a little more than a year after his firm managed the initial public offering.
References in periodicals archive ?
This number was a clear improvement over that of the previous 14 years, during which 34 medicinal orphan products obtained authorization.
FDA is using the funds for this new Orphan Products Natural History Grants Program as well as the existing Orphan Products Grants Program for clinical trials, which has provided more than $350 million to fund more than 570 new clinical studies and has supported the marketing approval of more than 55 products since its creation in 1983.
Since its creation in 1983, the Orphan Products Grants Program has provided more than $350 million to fund more than 570 new clinical studies and supported the marketing approval of more than 50 products.
- The US Food and Drug Administration Office of Orphan Products Development has granted Orphan Drug Designation to Newton, Massachusetts-based clinical-stage biopharmaceutical company Stealth BioTherapeutic's investigational drug candidate, elamipretide, for the treatment of Leber's hereditary optic neuropathy (LHON), the company said.
The FDA Office of Orphan Products Development offers designation to products for the treatment of rare diseases or conditions affecting fewer than 200,000 patients in the US.
The program is administered through the FDA s Orphan Products Grants Program.
The US FDA's Office of Orphan Products Development's designation provides sponsors with eligibility for a seven-year period of market exclusivity in the US following product approval, US FDA assistance in clinical trial design as well as an exemption from US FDA user fees, added the company.
The FDA Office of Orphan Products Development, or OOPD, has granted an orphan drug designation to glepaglutide for the treatment of the rare disease short bowel syndrome, or SBS.
Minister Horne will also be meeting with the Bipartisan Policy Centre Council on Health and Innovation and the National Institutes of Health, as well as the Office of the Orphan Products Development Food and Drug Administration.
Biotechnology company Zealand Pharma A/S (CPH:ZEAL) announced on Tuesday the grant by the US Food and Drug Administration (FDA) Office of Orphan Products Development (OOPD) of an orphan drug designation to glepaglutide for the treatment of the rare disease short bowel syndrome (SBS).
Food and Drug Administration s (FDA) Office of Orphan Products Development has granted an orphan drug designation for its investigational Ciprofloxacin Dry Powder for Inhalation (Ciprofloxacin DPI) for the treatment of non-cystic fibrosis bronchiectasis (NCFB).
- The US Food and Drug Administration Office of Orphan Products Development has granted orphan drug designation to Newton, Massachusetts-based clinical-stage biopharmaceutical company Stealth BioTherapeutics' investigational drug candidate, elamipretide, for the treatment of patients with Barth syndrome, the company said.