This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Northfield Botched Release of Safety Data

Another blood substitute bites the dust.

Northfield Laboratories (NFLD) issued a long-awaited update Wednesday on its phase III trial for the blood substitute Polyheme. The news was ugly, shocking and disturbing all at the same time.

Northfield shares had recently lost half their value in recent Wednesday trading, down $2.28, or 53.7%, to $1.97.

To repeat what I posted in the Columnist Conversation earlier Wednesday: I don't throw around the work "fraud" lightly, but if the Securities and Exchange Commission isn't investigating Northfield yet, it certainly has grounds to do so now.

What has me so riled up is that Northfield has just disclosed -- for the first time -- serious safety concerns related to Polyheme, including a high rate of heart attacks in patients given the blood substitute, in this pivotal phase III trial. Yet it's very likely that Northfield knew about these Polyheme safety problems way back in December 2006 when the company first released "interim" results from the study.

Why did it take Northfield five months to disclose what is certainly material information about its one and only product?

Polyheme's safety and whether the blood substitute was causing heart attacks in patients have been issues that have dogged the company for more than a year. I find it curious that this information from the phase III trial was somehow left undisclosed in December, even though it's inconceivable that such information wasn't known to the company at that time.
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAX $44.25 0.16%
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs