Recent Repros (NASDAQ:RPRX) FDA development indicates a good time to buy in

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By Jacob Maslow

Repros Therapeutics LogoIf you are looking for a biotech stock that has a product in the pipeline which addresses a mammoth market, you might want to pay attention to drug company Repros Therapeutics Inc (NASDAQ:RPRX). The company says that the FDA has accepted its FDA filing for its drug Androxal.

Androxal is a testosterone boosting drug that helps overweight men regain normal testicular activity and functions. There is currently a massive $934 million market for drugs that enable men to produce normal levels of testosterone. Obesity plays a major role in reduced testosterone production and as the percentage of Americans who are obese or morbidly obese continue to skyrocket due to unhealthy eating habits, it is expected that the percentage of men suffering from serious testicular impairment will climb as well. Pair this with the rising trend of men and women waiting longer to become parents and it is easy to see why products that have something to do with fertility and reproduction will have a robust market in the future.

Repros’ Androxal product is worth keeping an eye on because the company has reported that Androxal performed better than pharma giant AbbVie’s Androgel during Phase 3 clinical trials. According to trial results, more subjects responded better to Androxal than Androgel. Also, Androxal users produced higher sperm concentrations.

Normally, it takes the FDA around ten months from the time of final filing to decide whether to approve a new drug or not. If the FDA green lights Androxal, expect upward pressure on Repros stock. How much upside is there for this stock? Well, it’s current market value is $225 million and the total 2014 sales volume of Androxal’s main competitor, Androgel, is $934 million.

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