IsoRay, Inc. (NYSEMKT: ISR)
IsoRay has had a very interesting time in the market this week. After releasing positive data revolving around Cesium-131, the company’s stock skyrocketed; gaining more than 100% in a single day. However, yesterday Adam Feuerstein published a peer review that essentially stated that ISR released misleading data. As a result, the company gave up nearly all of its gains in the market. So today, we’ll talk about the study and Adam Feuerstein’s gripe with the data release, what we’re seeing in the market today, and whether or not ISR is likely to climb again. So, let’s get right to it…
Adam Feuerstein’s Gripe With ISR’s Cesium-131 Data Release
Mr. Feuerstein’s issue with IsoRay has a lot to do with the title of their press release…
The first issue that Mr. Feuerstein had about the data was the 100% survival rate at 5 years in high risk patients. Essentially, the number was so high that he seems to feel as though he has to argue with it. He also mentioned that those going through surgery alone exhibit a 98% survival rate; calling the 2% difference clinically irrelevant. He also pointed to the study’s publication in the medical journal Brachytherapy; Stating that results with or without Cesium-131 are essentially the same because it only added a small percentage to survival rates. However, I’m going to have to call BS on this one! Let’s say that everything Mr. Feuerstein said was true, and that Cesium-131 only offered a couple of percentage points better with regards to survival rate results. Now, let’s say that you had non-small cell lung cancer…would 2-3% mean something to you? I know it would mean the world to me! So, while Adam Feuerstein discredits the company; I still see this advancement as an amazing example of human innovation in medicine.
What We’re Seeing In The Market Today
After giving up all of its gains yesterday, IsoRay is trading just above the green line today and seems to have reached a level of support in the market. Currently (10:56), the stock is trading at $2.05 per share after a slight gain of 1.49% so far today.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see great things out of ISR; regardless of the AF bashing they’ve recently endured. Here’s why…
Short Term – In the short term, the stock has reached a level of support and is showing that it’s ready to bounce. All we need is one small piece of good news that will get investors excited again and we’ve got another big breakout.
Long Term – In the long run, Cesium-131 is bound to become a profitable alternative to standard care in the lung cancer market. Regardless of how small of an advantage in survival the drug gives patients; there’s a clear advantage. As I mentioned above, this is clearly the result of incredible innovation in the medical field; and will most likely lead to profit!
What Do You Think?
Where do you think ISR is headed and why? Let us know in the comments below!