Replies to post #42846 on Biotech Values

[DewDiligence]

Feds Cancel HEPH Contract for Radiation Antidote

[Not a surprise at all as far as I’m concerned. I’ve long questioned the efficacy of HEPH’s Neumune in this indication (e.g. #msg-8824954).]

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070308:MTFH97972_2...

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Wed Mar 7, 2007 7:38 PM ET
By Varsha Tickoo

BANGALORE, March 7 (Reuters) - Hollis-Eden Pharmaceuticals Inc. <HEPH> on Wednesday said the U.S. government canceled its request for proposal (RFP) for a contract for its drug to treat acute radiation syndrome, sending its shares down more than 18 percent in late electronic trade.

"We are surprised and shocked by today's decision," Hollis-Eden senior vice president Robert Marsella said by phone. The company plans to meet with the government to find out the reason for cancelling the RFP for the drug, Neumune. [Perhaps the reason is that the product doesn’t work.]

Rodman & Renshaw analyst Navdeep Jaikaria said by phone, "The RFP was pulled by the government...and that is why the stock is down." Jaikaria said he did not think this was a big blow for the company, as "it would have been a small contract, in our opinion, to begin with." Rodman & Renshaw has an investment banking relationship with the company.

Shares of the San Diego-based company fell to $3.50 in late electronic trade, after closing at $4.28 on the Nasdaq.
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