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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV