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Agreed
Thank you
Here's an interesting article from the Washington Post about Shorts and AF and impact. If you read only a bit, Read last paragraph.
Steven Pearlstein
By Steven Pearlstein Columnist September 26 at 6:14 PM
The past couple of weeks should have been heady ones for Bethesda-based Northwest Biotherapeutics.
The small biotech firm, with an innovative new vaccine treatment for brain, prostate and other cancers, had just received an initial green light from British regulators to offer its drug to doctors and patients even before its definitive Phase III trial is completed in the United States. The approval was the first under a new program designed to speed the process of getting promising treatments to market, and it follows a similar decision by Germany in March. Both European regulators cited independent analyses of results from earlier brain cancer trials showing that Northwest Bio’s immune therapy doubled the average of 17 months of extra life now provided by the standard treatment of chemotherapy and radiation.
Steven Pearlstein is a business and economics columnist who writes about local, national and international topics. View Archive
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But as it happens, Northwest Bio’s stock, after a brief upward spike, ended the week down 11 percent below where it was the day before the news from Britain crossed the ticker. And therein lies an eye-opening tale of how hedge funds and their Wall Street allies stifle innovation and damage the economy in their relentless pursuit of short-term trading profits.
I’m talking, of course, about the “shorts” — investors who actively bet against companies by borrowing shares of their stock and selling them in the hope that the price will go down and they can buy them back at a lower price before returning the shares to their rightful owner. In theory, short-selling enhances the efficiency of markets by bringing in fresh information and capital. In reality, it has contributed to turning financial markets into a giant casino which is easily rigged for the benefit of insiders.
Biotech stocks are particularly vulnerable to manipulation by the shorts. They tend to be small, with low share prices and relatively few shares actively traded. And because of the high risk involved — relatively few biotech companies ever succeed — share prices tend to be volatile, easily moved by rumors and news of regulatory action.
These characteristics make it easy for a handful of hedge funds to anonymously drive down the price by selling borrowed shares into the market at the same time, creating a self-fulfilling momentum that scares off other investors. Even when they can’t get ahold of enough borrowed shares, they might sell the shares anyway and simply fail to deliver them three days later when they are due. That’s known as a “naked” short, and it’s illegal.
The shorts’ tactics, however, extend well beyond the trading room. As the nonprofit advocacy group Citizens for Responsibility and Ethics in Washington (CREW) lays out in a recent white paper, shorts are active in anonymously feeding false and misleading information about their target companies to friendly analysts and bloggers while using social media to attack the intelligence and motives of those who view the company favorably. They enlist plaintiffs law firms to issue press releases soliciting shareholders to sue the target companies for securities fraud. And they pepper regulators with threatening letters and fillings demanding that they investigate their targets or deny them product approvals.
Such tactics make it difficult and expensive for biotech firms to raise the large amounts of capital they need to conduct drug trials and build production facilities. They were all used in recent years to cripple Dendreon, another company that is a pioneer in the use of immune therapy for cancer treatment, which was so weakened by the shorts that it has failed to recover even after receiving its much-delayed FDA approval. And now they are after Northwest Bio.
As you can see from the accompanying chart, anytime the price of the company’s shares began to rise this year, it was hit with another wave of short sales that drove the price back down. By the end of last week, the total number of borrowed shares was reported to be about 8.5 million, or about 30 percent of the shares not held by company executives or entities they control. That level of short interest is unusual. It’s also suspicious — so much so that at one point this summer, shareholders could earn a 34 percent return by lending their stock to the shorts just for one month. Based on filings by brokerage firms, Northwest Bio estimates that, in addition to the 8.5 million reported short shares, there are as many as 4 million short “phantom” shares created by the “naked” transactions.
In late July, CREW’s executive director, Melanie Sloan, asked the Securities and Exchange Commission to investigate market manipulation of Northwest Bio’s stock. (Sloan told me her organization has never been contacted by the company and has no connection to its executives, investors or directors.)
In her letter, Sloan called particular attention to Adam Feuerstein, a biotech reporter whose relentlessly negative blog posts for thestreet.com this year have not only been filled with exaggeration, mischaracterization and half-truths, but curiously have also coincided with the spikes in short trading.
On March 11, for example, the day that German regulators announced their approval and Northwest Bio’s stock broke through $10, Feuerstein was quick to weigh in with a story that the company had withheld the news for two weeks to use it to divert attention from the fact that it had failed to deliver an interim report on the results of its Phase III trial back in the United States. As the chairman of the independent committee overseeing the trial later pointed out, there was no interim study and, by protocol, the company would have been prevented from seeing it even if there were one. As for that delay in getting out the good news, the company’s perfectly reasonable explanation was that it needed time to have the German notification translated into English and checked by the Germans.
The next month, on April 3, the headline on Feuerstein’s post was that Northwest Bio acknowledged that the FDA might throw out results of its Phase III study. It sounds pretty ominous. But all that really happened was that the company, in its annual report filed with the SEC, included that possibility in the long list of risks that investors should take into consideration, just as any company in the midst of a Phase III trial would have to do.
Or consider Feuerstein’s posts in May and June concerning a presentation by Northwest Bio’s chief executive, Linda Powers, at the big annual cancer research conference, in which she described how one patient had responded to the company’s therapy.
In both columns, Feuerstein expressed outrage that a drug company would exploit the suffering of patients for commercial gain (imagine that!) by selectively releasing results from a Phase I/II trial. He quoted Dr. Aman Buzdar, the head of clinical research at MD Anderson Cancer Center, the lead hospital for the Northwest Bios trial, criticizing the company for taking the “unusual and inappropriate” step of releasing such information. If Buzdar had first checked with his colleagues, however, he would have found that two of them had recently appeared in a National Geographic documentary focused on just such interim results from a pancreatic cancer patient. And, as CREW noted in its letter to the SEC, Buzdar himself made positive comments at a 1999 conference about a breast cancer drug he was testing that was still in clinical trials.
Then last week Feuerstein declared that the approval by London was really a “non-news event” because only one other company had applied for a similar approval since the program was launched in April. It was all just a smokescreen, he explained, to divert attention from the unfavorable terms on which Northwest Bio had recently raised another $27 million from investors in a hostile funding environment — a hostile funding environment, we should note, that Feuerstein himself had helped to create.
Feuerstein declined to speak to me last week, but his editor said she was sticking by her “dynamic” reporter. When I asked whether Feuerstein had been in contact with the shorts, she would only say that he was in touch with a wide range of investors. Using thestreet.com’s journalistic standards, the headline on that might be: “Biotech reporter concedes he may be exchanging information with shorts.”
I have no idea whether Northwest Bio’s immunizations work or whether it will become the billion dollar company that Powers says it could be. What I do know is that given the choice between allowing innovative companies to develop promising products that could save thousands of lives, or allowing Wall Street wise guys to use sleazy tactics to manipulate share prices for short-term profit, I’m siding with the companies. Maybe it’s time for the Justice Department and the Securities and Exchange Commission to be siding with them as well.
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I wish I was all knowing and perfect, then I wouldn't have to read the insightful comments of those here who believe they are.
A threat?
Really?
FYI,
"APRI, developer of rapid onset erectile dysfunction cream #Vitaros will present #drug portfolio @SeeThruEquity Conf. in NYC Nov. 12"
RVL
Thanks.
By the way, it's ok to disagree with me.
I am voicing an opinion based on the facts and observations I have had over the last few years.
I don't no if there is cause and effect or merely a frequently repeated coincidence.
RVL
Do really believe the technical analysis has anything to do with a small cap Pharma PPS while the rest of small cap Pharma stocks are cratering too?
We still have the buy a chunk of shares, then sell at a penny or two lower with only 100 shares exchanged.
I have no idea what's up, but there certainly appears to be systematic manipulation downward in addition to a resulting panic sale by one of us "normal" traders
Is 100k trade buy or sale?
SB,
I do not think your post should be deleted. But, often you speculate as if is fact. Then you argue your position based on the fact you think you are righter than others when there is no FACT.
Fact is: (from my last post)
"I don't know that you are right or wrong. but, I am not disagreeing with your opinion, because like you, I don't any facts to support any statement I make. All I have is speculation."
You in fact, do not know if Damaj sold any or all of his interest in APRI. Or even, if he bought more share of APRI on the dip.
(I know about 5% rule for Insiders, but with all moving parts none of us know.)
DO We?
I would invite you to debate me on this using an SEC based FACT. Please reply!
As you know, I don't look for disagreement with those on this Board. I have a day job. But it's Sunday night and I am tired of the Crap on this Board.
DG,
If you need to erase this I understand.
RVL
Meco,
I was was referring to SB's statement that Damaj sold his shares in APRI.
I do not believe there is a way to confirm what to me is pure speculation. (I.e. made stuff up)
RVL
SB
I don't know that you are right or wrong. but, I am not disagreeing with your opinion, because like you, I don't any facts to support any statement I make. All I have is speculation.
RVL
From Vivus article in Seeking Alpha today...
"Marketing Stendra against well established big pharma competitors such as Viagra and Cialis was a tall order. Marketing this drug with a 15-minute label gives the company a selling tool that should be attractive to consumers. The key now is getting the name out there. As stated, the label gives Vivus a leg up on the competition in the United States. That being said, there is competition in Europe that works in minutes. Apricus Biosciences (NASDAQ:APRI) has an ED cream, Vitaros, that is already being marketed in some European countries that is also fast acting. That company has a market cap of just $65 million and U.S. rights for Vitaros, which were sold, have not yet applied for FDA approval."
Geez, lot's of panic here.
Apricus must have fooled the European approval body regarding safety and efficacy, as well as Takeda, Bracco, Sandoz, Marjorelle, into thinking product works and there is opportunity.
PPS is terrible, why?
Not a lot of volume.
Is it just the crowd that reads iHub selling reacting to each other in feeding frenzy?
Is someone pulling it down?
I don't know.
None of you do.
Drug works, it's approved.
Been for sale in one country for 90 days, two others for weeks.
Good luck to all.
I am in for long haul.
RVL
Shazam,
Take care.
It is a waste of time given input and motives.
Have fun Court.
RVL
Go get em. Hold them accountable!!!!
As requested, you are on ignore.
When your done with APRI management, please repeal Obamacare.
Beach
Yes, I do find the bickering at times entertaining.
But, as with everything it needs to be at the right dose.
I grew up in Minnesota. Cold and dark as heck 9 months out of the year. If all I did every day, all day was gripe about the weather, pretty soon no one would want to talk to me.
We all knew the weather was crappy, but we couldn't do anything about it.
Now as for this stock, I don't believe we can REALLY do anything about the actions of management, with one exception, SELL.
When I go to a restaurant, if food is bad, I don't coach the chef how to cook, I just don't go back there to eat, ever.
I grew up in Minnesota, I have now lived in sunny, warm, Florida
For 25 years.
Simple philosophy, change the things you actually control.
Otherwise, you get all wound up for no productive reason.
..................
RVL
Maybe you're right, I should just put posters that want to change the weather on ignore.
Gang,
No one is more unhappy here about PPS.
But, conspiracy theorists, shorts, management bashers, and just plain pessimists are REALLY becoming obnoxious.
I have stated this MANY times, yet no one replies.
Why would anyone who is long in a stock stay here night and day, and post negative opinions ?
And, only post on this stock?
Please, if you are in this category of posters, explain why you continue to be here and attempt to adversely influence opinion on APRI? You can't be putting In this much effort to save all present and future investors.
Help me with logic of why you are here.
Any normal person that is actually invested would dump and move on to a different investment.
Ok, I am done.
Let's see if anyone responds
RVL
Zman,
I think you're right. Nearly all the Pharma/health stocks I follow are down today.
But, I am with you, APRI must perform with sales or be sold to convince buyers of stock and stop the downtrend in PPS.
I am still a firm believer in pharmacology and product.
Hope I live long enough to be right.
RVL
Completely agree about France. Due to current utilization of alprostadil, ramp up in sales should be quick because of advantage in dosage form vs competition. I actually would have preferred France / Marjorelle was first to market.
Not that it matters, but a med that requires refrigeration can be OTC
(ie insulin)
No chance in U.S., we are going to start with prescription only. Then, after years of safe use, we could apply for change in status
Imagine the response/sales to Femprox once available with a marketing effort / message similar to this
http://www.ispot.tv/ad/7fjC/osphena
No, but you are feisty today, so I thought I'd point it out
Off by one year.
March 18, 2013 11:00 ET | Source: Apricus Biosciences, Inc.
SAN DIEGO, March 18, 2013 (GLOBE NEWSWIRE) -- Apricus Biosciences, Inc. ("Apricus Bio" or the "Company") (Nasdaq:APRI) (www.apricusbio.com) today announced the appointment of Richard W. Pascoe as Chief Executive Officer of the Company, effective March 18, 2013. Mr. Pascoe brings to Apricus Bio over 20 years of experience in corporate strategy as well as product development, sales and marketing in the biopharmaceutical industry, and has held positions of increasing responsibility at leading, innovative life science companies, including Somaxon Pharmaceuticals, ARIAD Pharmaceuticals and King Pharmaceuticals. In addition to his role as CEO, he has also joined the Company's Board of Directors. With Mr. Pascoe's appointment, Steve Martin, Interim Chief Executive Officer, will resume his responsibilities as Senior Vice President and Chief Financial Officer.
- See more at: http://www.globenewswire.com/news-release/2013/03/18/531438/10025467/en/Apricus-Biosciences-Appoints-Richard-W-Pascoe-as-Chief-Executive-Officer.html#sthash.Q9jDnCk3.dpuf
Very Happy to see Rodman presentation next week.
I am hoping/betting that there will be announcement with positive news in advance of the meeting.
Rodman is a great place for exposure
I might be missing your point.
I wouldn't be pleased with either of these stocks.
I am, however, feeling good about the product APRI has and the position we are finally in.
I will leave it to you to debate who is righter about the tactics a small Pharma CEO should use to drive shareholder value given the patchwork of relationships that had been inherited to sell the only product we do have approved and, as you pointed out, the dated clinical trials with the potential blockbuster that has yet to be definitively studied and approved.
My own point is both stocks have done equally poorly and if it weren't for this one day bump (which I believe will last about 24 hours) APRI would be the "tallest midget" on a 6 month look back.
http://chart.finance.yahoo.com/z?s=PTN&t=6m&q=l&l=on&z=l&c=APRI&a=v&p=s&lang=en-US®ion=US
Compare PTN vs. APRI over last 6 months.
Even given PTN bump today, not much difference between the two, with PTN off about 40% it's 6 month high.
Kind of a tallest midget phenomenon, don't you think?
Neostem has a similar deal to Apricus with Aspire:
NeoStem Announces Access to New $30 Million Equity Facility with Aspire Capital to Replace the Fully Drawn Facility
New York, June 3, 2014 — NeoStem, Inc. (Nasdaq:NBS) (“NeoStem” or the “Company”), a leader in the emerging cellular therapy industry, today announced that it has filed today with the U.S. Securities and Exchange Commission a prospectus supplement to its shelf registration statement enabling it to access its new equity facility with Aspire Capital Fund, LLC which replaced the prior agreement under which the Company received the full $20 million in equity funding. Under the new agreement, NeoStem has the right to sell up to $30 million in shares of common stock to Aspire Capital subject to certain terms and conditions over a two-year period. The agreement represents an additional tool to provide the Company with additional capital and flexibility. As of the March 31, 2014, the Company had approximately $41 million of cash and cash equivalents available to fund operations.
“The prior agreement worked very well to complement our business, fundraising and operational activities and enabled us to sell shares from time-to-time on market-based terms to a committed, long-time investor with substantial share ownership,” commented Dr. Robin L. Smith, Chairman and CEO of NeoStem. “As we have done in the past, we would intend to use the facility when we feel it is appropriate to help support the achievement of our clinical development pipeline and operational objectives and strengthen our cash position. This is a continuation of our relationship with Aspire that now goes back 4 years.”
The elements of the new facility are similar to the prior one and include:
The Company controls the timing and amount of any sales of common stock to Aspire Capital at a known price;
Aspire Capital cannot require the Company to make sales, but is obligated to make purchases as the Company directs in accordance with the terms of the agreement;
No limitations on use of proceeds, financial covenants, restrictions on future financings, rights of first refusal, participation rights, penalties or liquidated damages;
No warrants are associated with this facility.
More information is available in the Company’s prospectus supplement filed today with the U.S. Securities and Exchange Commission.
- See more at: http://www.neostem.com/media/press-releases/news-item/aspire-capital-equity-facility/#sthash.a4dBKWOY.dpuf
Eicoman,
Agreed, causation has NOT been proven, However, the incidence of Melanoma is statically significant in those using Viagra
This includes ED drugs that "act by PDE5A suppression",
Not ALL ED drugs.
Alprostadil/vitaros is a completely different and unrelated chemical compound.
My point is that this issue will have further study by the FDA because of the high usage of Viagra and the mortality associated with Melanoma. This will in turn lead to the inevitable frenzy of media attention because
Sex + Scandal + Money = sales/ratings.
So it won't just be scientists and investors paying attention to the results of the FDA's further study.
RVL
Ok, the presence of melanoma with concurrent utilization of Viagra IS statically significant .
As to cause and effect ;
Is it more likely that people who are diagnosed with erectile dysfunction & subsequently melanoma have a genetic pre-disposition or
A life style/environment that links the two diseases?
OR
Viagra alters your susceptibility to melanoma.
I think unfortunately, it's the later.
Time will tell.
The FDA will not let this go, there are too many users and too popular a drug. (Ie Tylenol scare)
It's always interesting reading here.
We all have basically the same information.
Some have a glass is half full view, some have a glass is half empty view.
Yet, everyone keeps following along, debating based on their own deductive reasoning. There is no secret set of information that one of us has. There are individual experience and backgrounds that each of us brings forward.
The question that continues to bother me about posters here is;
Why would someone spend so much time constant contributing a negative view on a blog for a stock they don't believe in?
And, it's the only stock listed under their name?
I would be long gone, working the next investment, not solely following and contributing my thinking night and day to a loser.
Flip side is, if someone is always positive, despite the facts of the situation, the must be in it deep, and trying to urge us to not dump and run.
For you longs, when reading "opinions" here, always consider the source. For me, I find the petty bickering over who is "righter" entertainment. But it's only that, entertainment.
If Vitaros sales are a blockbuster, I believe/hope management will find a way to tell us all on a more frequent basis about weekly/monthly sales (or orders for product).
On this site & Nasdaq
Ok gang,
What is this from 6am today ?
Notice of Effectiveness (effect)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
NOTICE OF EFFECTIVENESS
Effective Date: August 25, 2014
Form: S-3
CIK: 0001017491
Company Name: APRICUS BIOSCIENCES, INC.
File Number: 333-198066
I signed up for both.
Let's determine times most likely in agenda to reap benefit / insight.
RVL
Don't encourage him
SB
I call BS with your last hedging statement regarding accuracy of China Femprox trials
Your original statement was;
"That comment is based on my mistrust of clinical trials or anything else coming from China..."
RVL
Star,
Thanks for the insight about OTC/Over the Counter possibilities for RayVa. From a stockholder perspective, I hope you are right. But, from a professional perspective I believe you are wrong.
RVL ,
R.Ph., Doctor of Pharmacy
Star,
I disagree.
Rayva will have very narrow indication for usage. Physicians won't hand it out like Halloween candy, just "because my hands are cold".
However, with Vitaros, physicians will prescribe upon request.
RVL