Next, an email from Joseph V., who writes, "What are your thoughts today on Generex Biotechnology ( GNBT)? I have many people asking me about it lately. I tried to do some research and found your negative answers. It seems that this product is being consumed in a few countries. Please look into this." I'm as skeptical about Generex today as I was back in April 2008 when I first wrote about the company and its insulin spray for diabetes. The product, which patients spray onto the linings of their mouths, is approved and apparently used in India and Ecuador, but I haven't heard any legitimate or respected diabetes experts in the U.S. or Europe legitimize the Generex technology, which would give me pause as an investor. It's also hard to take Generex seriously knowing that the company sells a weight-loss spray called CraveNX and BABOOM!, an energy spray, at convenience stores across the U.S. and Canada. Generex shares, priced at more than a buck back in April 2008, now trade for around 50 cents.
Dan M. writes, "Adam, what's up with AMAG Pharmaceuticals' ( AMAG) stock price? It seems to be doing the opposite of what it should be doing (which is of course, go up so I can make money). The stock seems to be getting hit hard given recent approval, ample buyout speculation, pricing which appears to be above and beyond expectations and low float. Is this just a sell the news thing or is there something more to it?"
An email from Rich R. asks, "What are your thoughts on the current price of Anadys Pharmaceuticals ( ANDS) after the news you reported on awhile back about financing? Looks like the stock is getting cheap here if the drug gets FDA approval for Phase III." I fear Anadys is dead money until the company can collect more data on its hepatitis C drug ANA598. A phase II study testing the drug in combination with standard hep C therapy will start soon. A phase III study is still a ways off.
David D. writes, "I just read your article on the CEO of Elan ( ELN) and the transaction with Johnson & Johnson ( JNJ). I bought Elan at $8 during the recent activities. Is the J&J buyout a positive or no affect on Elan? I understand it will help reduce their debt and help the overall balance sheet but is this stock an eventual winner?" The pop in Elan's stock price caused by the J&J deal announcement on July 2 was modest and short-lived. Elan shares have now fallen below the level seen before the announcement. The cash infusion from J&J certainly helps strengthen Elan's balance sheet and will help the company pay off some of its debt. Good stuff, for sure. But Elan remains a work in progress because of real concerns about its multiple sclerosis drug Tysabri as well as the risks involved with its Alzheimer's drug development program. For Elan's stock to move appreciably higher, I think you need to see a significant and sustained uptick in Tysabri sales (i.e. a re-acceleration of revenue growth) or a major clinical success from the Alzheimer's program (perhaps fantastic phase II data from the ELND005, the drug partnered with Transition Therapeutics ( TTHI), or positive results from the phase III bapineuzumab studies).
Finally, to conclude with a chuckle, some of Geron's ( GERN) investors continue to rage at me with a demonstration of their intelligence. From Josh H., I received the following (I bleeped out Josh's cursing but left his spelling and grammar mistakes intact): "