Rivulet Media Inc (fka RIVU)

[bme]

SEC: Public vs. Private Company

Public companies are subject to specific SEC disclosure rules and biotech investors mine those disclosures carefully for information about development programs. One of the benefits of being a private in the early stages of clinical development of a new cancer therapy is the privacy. When I said that to a colleague who invests in public biotech, his response was clear and direct: that’s how companies hide data. As I mentioned above, adverse events in early stage oncology clinical trials can require significant effort to understand. Reflecting on my experience, learning about the data as the trial progresses (remember: no blinding) has been a series of incredible highs and very dark lows. Fortunately, none of our lows have ended up as deep as they appeared at first glance. I personally would not relish having to provide public guidance on events I don’t yet have data for, much less understand.

So if Juno is private, why all the excitement from the biotech investment community that generally focuses on the public market? The company made quite a splash by raising $120M in VC and going up against Novartis, which is working with CAR technology from University of Pennsylvania. Being in a hot area of development can lead to significant support as well as increased scrutiny at bumps along the road.

So….

While there aren’t specific requirements for private companies to disclose data from ongoing clinical trials, there are risks related to collaborators and heightened scrutiny that may place a company in the spotlight unexpectedly
http://thenextelement.wordpress.com/2014/04/17/private-vs-public-privacy-in-trials/
good read. BMSN