Prana Biotechnology (PRAN)

[iandy]

While the reduction in brain volume is interesting it was not accompanied by any improvement in cognition. While improvements in cognition were not the primary endpoint of the trial it was what everyone was looking for. The company had been touting the improvement in the trail making test in the two previous trials as proof the drug works. The results of this trial suggest the effect is transitory at best.
I am not sure you listened to the conference call following the trial but it was apparent this trial was a huge disappointment. This trial was designed to attract major pharma interest in the drug so the company could conduct a full blown phase 3 trial of the drug in Alzheimer's. The Alzheimer's indication is pretty much dead as a result of the trial and the trail making improvement from the 2 previous trials is now in question as a disease modifying effect.
I would humbly suggest you have little knowledge of the science here. The takedown of this stock was not only appropriate, it was to be expected in light of the results of the trial.
You should not look to the statements of CEO's to guide your investment decisions or give you an objective picture of an investment.