Biotech Values

[Whosetosay]

The notion that there are powerful forces out there trying to "get" your stock is almost always unfounded.

Perhaps, but certainly it is true as an indirect consequence in this case. Novartis will 'by any means necessary' protect the market share of its highly profitable (big and small) businesses. NVS ethics ranks with the lowest of big pharma. Note: Gl/Tas provides likely 35%+ of their Operating Income. Often, it's not about the science or the data or the drugs, it's about the money. The former leaves plenty of room for spin to serve the latter.

NVS's code of conduct with respect to Ariad will continue to play out. Expect more negativity from NVS to confuse the market (docs).

Market share in CML et al and Ariad stock are highly correlated. Market share is the end game for NVS, and Wall Street can profit from the effects of research events. People make money off the moves. We know with certainly, stock research that speaks to Ariad market share, especially negative reports (Favus and CS), move the stock quite a bit. The underlying correlations cannot be ignored, either in the research, or Wall Street relationships. No doubt, many CS clients got the research ahead of 'the crowd'.

With respect to Ariad, market share and the stock are currently 'one and the same', though the beneficiaries may be different. Essentially a near perfect conspiracy.


http://www.justice.gov/usao/nys/pressreleases/April13/NovartisLawsuitPR.php


http://www.corporatecrimereporter.com/news/200/novartis10312012/

http://www.justice.gov/usao/pae/Pharma-Device/novartis_settlementagreement.pdf

https://en.wikipedia.org/wiki/Novartis (Lucentis)