Kitov Pharmaceuticals Hldgs L Sponsored ADR (KTOV)

[rocketeer357]

IMO warrants are dead here. The picture really changed last fall when KTOV bought into their new drug candidate- all the sudden instead of a cashed-up company with successful phase 3 results looking at an NDA and FDA approval in 2017, they became a company that will need serious cheese to fund a new drug candidate.

Then pile on this latest news about the criminal investigation, which really sucks. Even if the company can escape any legal penalty for wrong-doing, if their clinical process is questionable, you can forget about FDA approval based on current results. This pushes the time-frame for KIT-302 even further out, which really chisels away at the value of warrants.

And credibility? This had been one of the company's strong points moving ahead- the line-up of seasoned industry and FDA-experienced pros who knew how to get an NDA over the line. That's all up in smoke now IMO. Reputation is everything: whether officials in the company acted criminally or not, the damage has been done.