Time after time, I get persuaded to check out yet another one of Adam Feuersteins pseudo intellectual posts that take issue with any small biotech company working to develop innovative and cutting edge science. While I have often asked him to opine on the perennial penny stock, TST (his parent company), he seems to deflect from that issue and would rather argue that while the provider of his paycheck does not hold much investor credibility, his own work should be credited with providing unbiased, fact-filled research, free from selective reason. (Hopefully, you had someone around to provide you with a Heimlich maneuver.)
Adam Takes On CTIX
On Monday, Adam Feuerstein decided that it was time to pick on Cellceutix, a stock trading at slightly over a buck a share. Within his publication, Adam could not have made even the most intentionally misinformed investor more proud.
Despite the fact that CTIX has published several clinical updates that provide compelling data as to why Purisol, their lead candidate to treat psoriasis, is on track to potentially replace the current standard of care, Adam would rather act as though he doesn’t have the skill set to open a data link, one that would fill his bully brain with enough information to stop him from writing nonsense.
Well, perhaps it would stop him from writing at least some of the googly-goo, but not all. I feel almost certain that he would still find enough selective material, you know, those items from a safety and tolerability trial, for instance, to persuade his audience that a product failed its primary endpoint.
Gee, even as a political science major turned bully bound pseudo biotech analyst, he should know better than to mix a safety trial with one that is truly working to accentuate efficacy. And, I do know that he does know the difference. But, then his material would not have the same shock value, the kind that is working overtime to prop up The Street (TST) share price, currently balancing unconvincingly at 84¢, a few pennies higher than its 52-week low of 82¢. And, if Adam did pay attention to the real data, there would be far less intentional misinformation spewed about CTIX.
Let Innovators Innovate
What bothers me the most about how Adam covers stocks is that he fails to recognize that during the journey to deliver cutting edge and innovative medicine, there will be pitfalls along the way. Large pharma is not immune from the pitfalls, either. It’s just that unless Uncle Jim wants his publication to pump a stock, the mood of the research is generally negative; so much so, in fact, that even when the TST biotech mailbag is proven wrong, they will hold onto their arguments tighter than spandex on a fat man.
A great article titled Adam Who? is a must read for all. Like the guy or not, it is spot-on funny and plum full of facts.
For several years, I read opinion by Adam on Sarepta, probably his biggest pump of all. It was unreal how positive he was on a stock that was full of all the things he despises in other companies, like CTIX.
While he tears into companies that have Sarepta-like data, he gave them a pass, as well as pages of free embellished publicity. Sarepta is addressing a small market, the potential revenue is greatly exaggerated, the study failed to demonstrate any truly miraculous results, and the efficacy data is inconsistent. But, he loves them!
With that said, though, I HOPE THAT THE SAREPTA DRUG MAKES IT TO MARKET. In fact, I believe that the FDA is by far the greatest obstacle to patient survival in the world. But, that story is for another day.
CTIX Provides A Technology Lesson
While CTIX was quick to respond to Adam’s brutal-but-flawed attack, I wonder if he will actually take the time to open the links that management sent him and study. Perhaps he can weed out the preliminary safety data and concentrate on the entire picture.
It’s important for readers to know that patients responded extremely well to Purisol treatments. Because the drug is administered orally, patient compliance is significantly greater than with the current standard of care. Also, positive response rates were equal to or better than the current standard of care. And, I would be remiss if I did not add that the drug will likely receive expedited approval through the FDA’s 505(b)2 approval process.
Readers owe it to themselves to read the entire response that CTIX provided to Adam. It was one ass whoopin’ that rightly deserves another, and I am sure it is forthcoming.
Don’t get me wrong, though. Sometimes the guy actually makes a good call, and as long as he draws the chart to the exact time parameters, he can make it appear as though he is always right.
But, smoke and mirrors won’t cure cancer or any of the other diseases and illnesses being addressed by many small and underfunded biotech companies. It’s for that reason that the guy should simply drop a pair and properly cover stocks that have promise, despite some temporary weakness in their bank accounts. He should be allowed to keep his warped sense of humor, but he should at least be expected to give these innovators some breathing room.
Until Adam wants to formally acknowledge himself as a cynical, comedic writer, he should leave the investment jokes to others and allow small and emerging companies like CTIX the chance to prove themselves without the unnecessary share pounding caused by a misinformed following.
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