News Focus
News Focus
icon url

veni vidi vici

05/05/12 11:27 AM

#258 RE: Seel #257

Your reply that InVivo so far has not had mixed results in their preclinical work is just NOT TRUE. This is a large part of my concern with the company and its leadership as well as other so-called investment experts (like Jason Napodano from Zacks). They almost always only want you to hear the upside but are not telling you the complete story. Prudent investors need to know all the facts.

Regarding InVivo’s preclinical work, on one hand, the CEO is always going around making bold statements claiming that their research findings so far have been uniformly positive (i.e., like you stated "they have not had mixed results"). On the other hand, what the CEO is not telling investors is that InVivo run into major problems in 2009 with the Oregon Health & Science University (OHSU) National Primate Center which they had contracted to conduct their preclinical SCI work in monkeys. This prestigious research center is one of eight National Primate Research Centers in the United States http://www.ohsu.edu/xd/research/centers-institutes/onprc/?WT_featured=spotlight&WT_rank=spotlight. Specifically, InVivo’s pre-clinical study was stopped after the first seven monkeys that had underwent spinal-severing surgery developed life threatening complications as a result and four of them had to be euthanized within days.

InVivo subsequently sued OHSU for not providing the monkeys with proper post-surgical care, which they say caused the routine bladder problems to become more serious issues and charged OHSU with halting the experiment and euthanizing the animals against the company's wishes.

OHSU countered that all monkeys received appropriate around-the-clock care after surgery and that it was InVivo who called a halt to the surgeries. Here is a quote from Jim Newman, the OHSU spokesperson at the time: "The day after surgeries began, we noticed that the surgery results were more severe than the company had predicted. We informed InVivo of these problems, and they voluntarily stopped the research."

As is often the case in unfortunate situations like this, the specific details of what exactly did go wrong remain a matter of dispute between the research institution and the company and both parties eventually reached an out-of-court settlement.

However, in light of this, it should make every investor wonder how the CEO rightfully can continue to say things like “We have treated over 40 monkeys and all of them – each one – is up and running in about 3 weeks” (this quote is from one of his recent TV road show appearances).

Plaintiff: InVivo Therapeutics Corp.
Defendant: Oregon Health & Science University
Case Number: 1:2009cv11458 Filed: September 1, 2009
Court: Massachusetts District Court Office: Boston Office County: Middlesex
http://dockets.justia.com/docket/massachusetts/madce/1:2009cv11458/124146/