Companies whose lead (or only) drug doesn’t have the advertised MoA often make compelling shorts. I have a particular one in mind from the not-too-distant past, and you probably know which one :- )
Always pays to learn from mistakes, and I have plenty.
However, I would say the example you have in mind is a bit different.
I think SRPT is a lot like CLDN: preclinical or clinical diagnostic data pretty much conclusively shows the drug is not performing its MOA, and therefore the clinical results cannot be trusted.
TELK was a lot like THLD, wherein there was a novel twist added to an old drug class. Nobody doubts that mustard gas kills cells, but the doubt should have been (for some of us) in assuming it could have heightened efficacy due to a designed gating factor.
Shades of grey perhaps, but I see them differently. But the distinction doesn't excuse the past mistake :D
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.