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The strength in
today is likely due to the scheduled publication tonight in
of a phase II study of the company's Alzheimer's drug Dimebon.
This is the "controversially positive" phase II study conducted in Russia that put Dimebon on investors' radar screens, but which also ignited a raging battle between bulls and bears over whether or not Dimebon is a real Alzheimer's drug.
The media embargo on the Dimebon study lifts at 6:30 p.m. EDT tonight; clearly, word of its publication has leaked. The stock is soaring 22%. I think I'm safe in disclosing the fact that the study is being published without offering any details.
This is significant news if only because the study was supposed to be published last fall, or at least that's what the bulls were saying.
lends a certain imprimatur to drug studies, so Dimebon believers viewed a pending publication as validation of the data.
When months went by without the study appearing in the
or any other medical journal, however, the Dimebon haters took that as a sign of trouble with the data.
This phase II Dimebon data have been discussed and presented at some length already, so there likely won't be a lot of new info in the
article. However, the study's publication -- finally -- does remove an overhang on Medivation's stock.
Adam Feuerstein writes regularly for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback;
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