BOSTON ( TheStreet) -- I've long warned investors to be wary of companies that use dubious scientific analysis to spin positive results from what are really failed clinical trials.
Call it post-hoc data mining or retrospective data dredging, but by either name, the purpose of these all-too-common tactics is usually to deflect investors' attention away from bad news.
Apricus Biosciences (APRI) and Cel-Sci (CVM) issued separate press releases in the past week which relied heavily on post-hoc data mining to hype the prospects of experimental -- and deeply flawed -- drugs in their respective pipelines. Knowing how to spot the red flags in these types of announcements can save you a lot of pain and losses down the road.
The headline on Apricus' announcement set off alarm bells immediately: "Apricus Biosciences Reports
Reanalysis of Its U.S. Phase III Trials for MycoVa Showing Drug is Effective in Mycological Cure Resulting in Eradication of Nail Fungus."
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