Biotech Stock Mailbag: Generex
Eleven new drugs are vying for FDA approval in October, which makes the month a perfect time to see which of the Biotech Stock Mailbag readers can best predict how many of these new drugs cross the FDA finish line and how many are left standing on the sidelines.
Please visit TheStreet's FDA Drug Approval Contest web page and submit your entry quickly. The FDA may issue the first of October's drug approval decisions tonight, so don't dawdle. Good luck!
Moving on to this week's Mailbag. Larry G. writes, "Hey Adam, what are your thoughts on Anna getting knocked out of the way over at Generex Biotechnology (GNBT)?"Anna is Anna Gluskin, the now former chairman and CEO of Generex. On Wednesday night, Generex said the board relieved Gluskin of her executive duties although she will remain a director. "Generex has reached a stage in its maturation where new senior management leadership is now needed for the company to capitalize more effectively on the opportunities that we believe are available to the company. We believe that a tighter focus on the company's core business is needed and we have determined that this can only be achieved under a new President and CEO," said John Barratt, a Generex independent director who was named the company's new chairman, in a statement. Mark Fletcher, Generex's general counsel, was appointed interim CEO while a search for a permanent chief executive is conducted. My thoughts: Gluskin was a terrible CEO, so her departure is a positive. However, I've never believed Generex to be an investable company for many reasons beyond Gluskin's lack of leadership. Gluskin's exit minus any other fundamental changes or improvements at Generex doesn't change my view. I'm happy to see Generex's board do something smart for once. It's a step in the right direction; however, Gluskin remains tied to the company as a director. Why? Won't that hamper more positive change? Will Generex be able to attract a well-qualified CEO when the company's old, ousted CEO still sits on the board? And why did the board act now to remove Gluskin? Are there other facts that investors don't know about? Generex's statement regarding the changes in the company's executive team is rather vague. Let's see if any more detail or disclosure is provided that can shed light on the situation when Generex files its annual report with the Securities and Exchange Commission. The 10-K is usually released in mid-October.
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