If it gets delayed and the stock plummets even further, why wouldn't you some exposure? At a very low cost with very high upside, it seems like a no brainer to me. Especially since the odds of approval go up with an extension. IINM, the fear of additional testing taking years is if it gets rejected and they have to start over. An extension would allow them to clarify (or build on) the existing studies.
That's why I'd want to be out before the event date, and I'd be willing to get back in if sellers overreact. This drug has a shot and I'd be willing to hang tight during an extension for the upside. But it doesn't make sense to me to hold on to a basis in the $10-$14 range if this thing could be sitting at <$5 for an extended period of time before coming back.
Selling before the event date only risks missing out on a spike up if all goes well, and my gut feeling is waiting for a hyped up date is almost always a mistake (and often a PnD). There's no reason the FDA has to wait until 7/7, they could approve this at any time - so if it's still silent in the final countdown I'm not hanging around for the buzzer.