Cytodyn Inc (CYDY)

[ClosetInvestor]

Here you go:

Did NP knowingly deceive investors by claiming to have submitted a completed BLA that was grossly incomplete? Did he then sell 85% of his shares during the spike in stock price after the announcement? The evidence points to yes.

Here’s a timeline, with references, outlining how Dr. Pourhassan allegedly filed the BLA incomplete, PRed that it was filed complete, and how he and Dr. Kelly subsequently sold millions of shares before publicly announcing that the BLA was in fact, incomplete. The SEC might refer to this as material misstatement or omission in a company’s public statements and insider trading.

-On April 14th, 2020, the stock closed at $2.51 with a high of $2.77.

On April 14th, 2020, per documents from a court filing, Dr. Pourhassan sent an email to Amarex, Cytodyn’s Contract Research Organization (CRO), requesting the biologics license application (BLA) for HIV be filed whether the BLA was complete or not. “Please file the BLA no later than next week Wednesday, even if we are short in no matter what portion of whatever it is that we are short.” This request was made because, per Dr. Pourhassan, “Today we have so far in 1 hour almost 20% drop in our stock price. Yesterday we had drop also after putting out great results about COVID-19 patients we are seeing these type of decline. This drop will be much deeper if we don’t file our BLA as the message board now is getting bombarded by investors who are very frustrated with me and CytoDyn.”

-On April 27th, 2020, the day the BLA PR was released, the stock closed at $3.73 with a high of $3.74. The previous trading days close was $3.18.

On April 27th, 2020, CYDY released a PR announcing the submission of the biologics license application (BLA) for their drug leronlimab (LL) for combination therapy in HIV patients. The title of the PR specifically stated, “CytoDyn Submits Completed Biologics License Application (BLA) to the FDA…” Later in the PR, Dr. Pourhassan is quoted as saying, “With the BLA filing for a combination therapy now complete, we are continuing our efforts on commercialization-readiness, as well as advancing leronlimab in the other important therapeutic areas of COVID-19, cancer and immunology.”

https://www.cytodyn.com/investors/news-events/press-releases/detail/421/cytodyn-submits-completed-biologics-license-application

-On April 30th, 2020, three trading days after the BLA PR was released, the stock closed at $3.50 with a high of $3.74.

On April 30th, 2020, per SEC filings discussed below, Dr. Pourhassan sold 2,219,387 shares at $3.53.

-On May 1st, 2020, four tradings days after the BLA PR was released, the stock closed at $3.19 with a high of $3.54

On May 1st per SEC filings discussed below, Dr. Pourhassan sold 1,399,685 shares at $3.26

On May 1st per SEC filings discussed below, Dr. Kelly sold 1.2 million shares of stock at $3.26

-On May 4th, 2020, five trading days after the BLA PR was released, the stock closed at $2.77 with a high of $3.

On May 4th, 2020, the company released a PR regarding COVID. In the boiler plate comments in that PR, under the header, “About Leronlimab (PRO 140) and BLA Submisison for the HIV Combination Therapy,” in the second paragraph, the company makes the following statement, “We would like to provide an update that the Biologics License Application (BLA) for Leronlimab as a Combination Therapy for Highly Treatment Experienced HIV Patients will be considered completed after the clinical datasets are submitted on May 11, 2020. The clinical datasets are updated to address FDA comments for mock datasets from March 12 and March 20, 2020.”

https://www.cytodyn.com/investors/news-events/press-releases/detail/425/fda-approves-54-emergency-inds-for-leronlimab-treatment-of

Also on May 4th, 2020, a SEC Form 4 was filed, showing that the CEO, Dr. Pourhassan, sold approximately 85% of his holdings between April 30th and May 4th, 2020. On May 4th, Dr. Pourhassan sold 1,201,654 shares at $2.79.

https://www.cytodyn.com/investors/sec-filings/all-sec-filings/content/0001807094-20-000005/primary_doc.html?TB_iframe=true&height=auto&width=auto&preload=false

-On May 5th, 2020, six trading days after the PR was released, the stock closed at $3.13 with a high of $3.37.

On May 5th, 2020, a SEC Form 4 was filed, showing that the CMO and Chairman of the Board, Dr. Scott Kelly, sold 1.2 million shares on May 1st, 2020, one trading day before the first boiler plate comment in a PR that the BLA was not complete.

https://www.cytodyn.com/investors/sec-filings/all-sec-filings/content/0001807094-20-000006/primary_doc.html?TB_iframe=true&height=auto&width=auto&preload=false

-On May 6th, 2020, seven trading days after the PR was released, the stock closed at $3.23 with a high of $3.30.

On May 6th, 2020, the company released a PR regarding COVID. In the boiler plate comments in that PR, under the header, “About Leronlimab (PRO 140) and BLA Submisison for the HIV Combination Therapy,” in the second paragraph, the company makes the following statement, “We would like to provide an update that the Biologics License Application (BLA) for Leronlimab as a Combination Therapy for Highly Treatment Experienced HIV Patients will be considered completed after the clinical datasets are submitted on May 11, 2020. The clinical datasets are updated to address FDA comments for mock datasets from March 12 and March 20, 2020.”

https://www.cytodyn.com/investors/news-events/press-releases/detail/426/manuscript-describes-how-cytodyns-leronlimab-disrupts

-On May 7th, 2020, eight trading days after the PR was released, the stock closed at $3.07 with a high of $3.23.

On May 7th, 2020, CYDY released a PR announcing the start of their severe and critically ill COVID trial in Novant Health hospitals. In the boiler plate comments at the bottom of the PR, under the header, “About Leronlimab (PRO 140) and BLA Submisison for the HIV Combination Therapy,” in the second paragraph, the company makes the following statement, “We would like to provide an update that the Biologics License Application (BLA) for Leronlimab as a Combination Therapy for Highly Treatment Experienced HIV Patients will be considered completed after the clinical datasets are submitted on May 11, 2020. The clinical datasets are updated to address FDA comments for mock datasets from March 12 and March 20, 2020.”

-On May 8th, 2020, nine trading days after the PR was released, the stock closed at $2.92 with a high of $2.94.

On May 8th, 2020, CYDY released a PR clarifying the status of the BLA filing. The main focus of this PR was to officially announce the boiler plates comments from the May 4th, 6th, and 7th PRs. In this PR the company explains that the BLA is not complete but will be completed on May 11th, 2020. The company explained in this PR that clinical data sets still need to be submitted, data sets that were required following FDA feedback in March of 2020.

https://www.cytodyn.com/newsroom/press-releases/detail/428/cytodyn-clarifies-status-of-biologics-license-application

-On May, 13th, 2020, CYDY released a PR announcing the filing of the remaining portions of the BLA to the FDA.

https://www.cytodyn.com/investors/news-events/press-releases/detail/430/cytodyn-completed-submission-of-all-remaining-parts-of

Summary: IMO, based on the newly released email and the PRs and SEC documents referenced above, Dr. Pourhassan knew the BLA was incomplete when it was filed on April 27th, 2020. Shortly after this PR, which increased the stock price in the following days/week, Dr. Pourhassan and Dr. Kelly sold millions of shares. The majority of these shares were sold before CYDY publicly disclosed that the BLA was in fact not complete. Is that a Coincidence? You decide.