Anyone can selectively pick a universe of Biotech corporations and show 100 percent failure of phase 3 trials.
To be true to the reader is another thing. There are three Biotech companies that come to mind in 2012 that had market caps smaller than 300 million several months before positive phase 3 result. Their positive results brought their market caps well over 500 million. Their ticker symbols are ACAD, SRPT, ARNA. Go back and check their shares outstanding, stock price and calculate their market caps four months prior to anoucements.
The article posted by the Motley Fools is Foolish, distorted and not truthful. Why anybody would follow a company with Fool in it is beyond me.
Don't let misguided information scare you from a position. Stay long and strong!
Don't believe the Feurstein - Ratain report, they are in the pockets of Hedge Fund Buddies who trade option premiums for a living. They can create flash crashes just like last Thursday. Their articles are inaccurate!
Precisely...the market cap of CLSN did exceed the magical $300M cap they denote just last week. So, when the price moves back up prior to release the cap will likely be there again, thus, viola, the prediction is moot. Anyhow, note that any general population with the same disease fares far worse than those in this study, (which is why Europe has already approved a marketing plan and the PFS data has absolutely wowed the CEO and the scientific community at large). The chances for a positive outcome are very realistic and quite likely.
ACAD has not received approval for pimavanserin. They are scheduled for FDA review in the fourth quarter of 2013. The point is the phase 3 trial was successful. Market cap was under 300 million before the fireworks began.