UroGen Pharma Ltd. (URGN) shares plummeted 5.06% in pre-market trading on Friday, marking a significant reversal from its recent upward trajectory. This downturn comes on the heels of an impressive rally that saw the stock surge 21.9% in a single day and 120% year-to-date, following positive developments in its bladder cancer treatment pipeline.

The recent enthusiasm for UroGen was fueled by preliminary data from its Phase 3 UTOPIA trial, which demonstrated a 78% complete response rate for UGN-103 in treating certain bladder cancer patients. Moreover, the FDA's agreement that these results could support a New Drug Application submission further bolstered investor confidence. However, the current plummet suggests that some investors might be taking profits after the substantial gains.

While the long-term outlook for UroGen remains positive, with analysts setting a fair value of $33.75 (suggesting the stock is still 30.3% undervalued), the current downturn highlights the volatility often associated with biotech stocks. Investors appear to be reassessing the stock's valuation, which stands at a price-to-sales ratio of 11.3x, higher than both the peer average and industry average. As the market digests recent news and recalibrates expectations, UroGen's stock may experience further fluctuations in the short term.