This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

AspenBio Finds Fault Afar for Failure

CASTLE ROCK, Co. ( TheStreet) -- I must give props to AspenBio Pharma (APPY). The company's experimental hospital test for appendicitis went up in flames Monday night, but the excuses dished out by management for the whopping failure and setback to Aspen's AppyScore are destined to become instant classics.

The dog didn't eat AspenBio's Appyscore test results. No, that would be too facile an explanation for 1) why the phase III study failed, and 2) why Aspen is jettisoning plans to seek AppyScore's regulatory approval.

Instead, AspenBio management blamed the poor AppyScore test results -- most notably an alarming number of false positives -- on "transportation shipping conditions" of blood samples from the hospital emergency rooms to a central reading laboratory and the length of time it took those samples to make the trip.

Allow me to translate: What AspenBio's management said Monday is that the dog with AppyScore blood samples in its mouth got on a cross-town bus headed to the central laboratory, but the bus driver got lost and the bus' air-conditioning system broke down so by the time the dog got to the lab, the blood samples were cooked, causing the AppyScore test results to read out a diagnosis of appendicitis when in reality the patients were just fine.

If it weren't for that unfortunate screw up, AppyScore would have been golden. Got that? Understand? Good.

So, AppyScore is dead, just as I warned back in April when AspenBio was trading above $4. The stock closed Monday at 97 cents and was down another 10% in the after-hours session as investors digested the bad news.

Where does AspenBio go from here? Monday night, the company said it would forge ahead with an AppyScore version 2.0 appendicitis test, one that could be administered fully in a hospital emergency room, which theoretically, will eliminate the sample transportation excuses… er, I mean issues… that derailed AppyScore version 1.0.

AspenBio said if all goes well, a pivotal clinical trial of AppyScore 2.0 could start in 2011.

If all goes well… not exactly comforting words from a management team whose only real talent seems to be explaining why stuff doesn't go well.

-- Reported by Adam Feuerstein in Boston.

Follow Adam Feuerstein on Twitter.

Adam Feuerstein writes regularly for In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs