GranuFlo was first marketed and distributed in 2003. Since then, it has become the most commonly used product of its type. The defendants launched their marketing initiatives claiming that GranuFlo was both effective for pH balance and safe. According to Harbaugh’s lawyer, the defendants said GranuFlo was “the safest dry acid product” and that it was backed by “superior clinical outcomes.”
However, despite these claims, Fresenius Medical Care is alleged to have known of the significant risks involved with GranuFlo as early as 2001, before the product was marketed. Furthermore, a 2010 study by Fresenius examined the incidence of sudden death and cardiac arrest among patients. These results were distributed in an internal memo in 2011. They confirmed that patients were six to eight times more likely to suffer cardiac arrest when using GranuFlo and NaturaLyte. However, this information only became publicly known when the memo was leaked.
Why doesn't FMS take a hit?
The only time I recall seeing a significant decline was when medicare made cuts and it wasn't just FMS that declined. They appear to garner awards too. Are they somehow protected from bad news?
So now that you've jacked the price up, I wonder how this affects the play for shorts. After losing 33% of their investment, I imagine there is more incentive to stay short and wait for the drop from 1.33 to 1.00 that would theoretically come in the next months in the absence of news. However, staying in the game keeps the possibility of a massive squeeze alive.