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

Biotech Stock Mailbag: Generex, Part II

BOSTON ( TheStreet) -- The more I dig into Generex Biotechnology (GNBT) and its insulin spray for diabetics, the more preposterous the story becomes.

I wasn't planning to spend a lot of time writing about this penny stock after last week's Biotech Stock Mailbag, but then the angry emails and comments came flooding in. On Tuesday, Generex issued a press release demanding I retract my "false and misleading" article. At the same time, I received a punchy letter from Generex CEO Anna Gluskin, via her attorney, in which she called me "malicious."

The Hostile React-o-Meter went to 11!

For a veteran reporter and columnist like myself who enjoys nothing more than exposing the modern day snake oil salesmen of the biotech age, Generex's all-bluster-no-bite protestations are a huge red flag.

As I burrow into Generex, it becomes apparent almost immediately that the company is using science and the quest to develop an alternative insulin delivery method not to actually help diabetics but as a ruse to perpetuate a 15 year-long stock promotion scheme. In the process, investors are getting fleeced while Generex management earns millions of dollars in compensation. [Gluskin was paid $1.15 million in total compensation for the company's 2008 fiscal year.]

I spoke with Gluskin briefly on Wednesday to ask her about Generex and Oral-lyn but she didn't want to comment without her lawyer on the phone. I agreed but they never called me back.

In a comment posted to last week's Mailbag, RJS9787 wrote, "Interesting take on Generex, Adam. Your two premises are completely false. First there have been numerous peer reviews for Oral-lyn dating back to the early part of this decade... In 2010, the two main independent researchers studying Oral-lyn, Dr. P. Raskin and Dr. P. Pozzilli, published the latest update for Oral-lyn's clinical development and this appeared in the peer-reviewed journal Diabetes, Obesity and Metabolism. All of the studies concluded by showing zero serious adverse effects attributed to Oral-lyn and that buccal spray insulin is non inferior, and often superior, to regular injectable insulin."

The February 2010 review article on Oral-lyn authored by Raskin and Pozzilli titled "Review of Clinical Trials: Update on Oral Insulin Spray Formulation" is helpful, but not in the way that RJS contends. Far from vindicating Oral-lyn, the article actually demonstrates quite clearly the lack of any credible clinical data to support the insulin spray's efficacy or safety.
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
CTIC $0.44 -5.60%
GNBT $0.01 -3.51%
NVS $74.35 -2.30%
MNKD $1.40 -5.10%
SPPI $6.96 -2.30%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs