Two contradictory views of my Oncothyreon (ONTY) article, which discusses the pros and cons of the lung cancer vaccine Stimuvax:
Yes, Adventrx Pharmaceuticals (ANX) is over valued, regardless of what Steve N. happens to think: "The SEC should investigate you and your attempts to manipulate the price of a stock to your benefit. Time and time again it has been brought to my attention that you write an article bashing a stock, causing the stock's price to temporarily loose [sic] value, and then recover after you buy stock or options. You are an example of what makes the stock market a corrupt investment vehicle." Remember the golden rule: Stock prices lie. Fundamentals do matter -- eventually. One more thing, Steve: It's l-o-s-e, not l-o-o-s-e. C'mon dude, spell check!
I called the merger between Amag Pharmaceuticals (AMAG - Get Report) and Allos Pharmaceuticals (ALTH) the worst ever in biotech history, which prompted Daniel L. to ask, "But how do you really feel?" Ha! I wasn't clear enough? Some additional thoughts on the deal: Amag put itself up for sale but found no bidders, which is why Amag was forced into a consolation merger with Allos, according to a large Amag shareholder who asked to remain anonymous. Amag is trying to sell the Allos deal as a financial transaction that brings cost savings and more cash to the balance sheet plus additional leverage to the income statement. Having two products (Feraheme and Folotyn) to sell by a single sales force should help Amag reach profitability, something the company was not going to be do by selling Feraheme alone, Amag argued. Interesting strategy, but why believe anything Amag's management team spins given its terrible track record of over-promising and under-delivering results in the past? Other than talking about $55-$60 million in cost savings by merging with Allos, Amag management offered little detail about how taking on the marketing of an underperforming, orphan cancer drug like Folotyn is going to get the company to profitability. The utter lack of financial disclosure and guidance from Amag this week stands in start contrast to Alkermes (ALKS), which provided investors with a plethora of financial metrics and modeling to support its smart merger with Elan Drug Technologies announced in May. Alkermes provided even more financial guidance on the deal at an investor meeting this week.