Eagle Pharmaceuticals Inc (NASDAQ:EGRX) shares are on an almost 24% cave-in today after the biotech firm’s leading pipeline program, the one the Eagle team had praised as surveying a $400 million peak prospect received a Complete Response Letter (CRL) from the FDA. The culprit? EGRX’s Ryanodex in the indication of Exertional Heat Stroke (EHS). Ryanodex had the chance to be the first to market in EHS, but now investors are sprinting away from the scene of the stock dive.

Top analyst Irina Rivkind Koffler at Mizuho is anticipating a disintegration of valuation, which is already underway amid skepticism circling whether label expansion can remain a possibility for the firm, and whether chances of EGRX takeout can survive this latest disappointment.

On back of the CRL for Ryanodex, the analyst maintains an Underperform rating on shares of EGRX with a $57 price target.

Koffler concludes gritting her teeth at the most unfavorable of circumstances facing the firm, elaborating, “FDA asked Eagle to conduct another trial, which we believe is the worst case scenario for this program given the rarity of the condition and the challenges associated with trial conduct and execution. This news is especially disappointing to us because expectations for approval were high, in our view. In its investor presentations and analyst day, mgmt. highlighted its EHS pre-launch activities and reimbursement strategy, so FDA’s request for additional information was even more surprising (albeit less so, given the recent delay in FDA response this week). We don’t know if this program will ever make it to the market. We reiterate our Underperform rating and expect the stock to meaningfully trade off on the news. We may update our price target after speaking with mgmt. and assessing additional opportunities for Ryanodex.”

Irina Rivkind Koffler has a very good TipRanks score with a 55% success rate and a high ranking of #135 out of 4,608 analysts. Koffler earns 18.5% in her yearly returns. When recommending, Koffler gains 132.2% in average profits on the stock.

TipRanks analytics show EGRX as a Buy. Based on 3 analysts polled by TipRanks in the last 3 months, 2 rate a Buy on Eagle stock while 1 issues a Sell. The 12-month average price target stands at $106.00, marking a nearly 103% upside from where the stock is currently trading.