With a Billion dollar drug on deck and a NDA pending this stock is going to make a major move higher in no time. Note she gives not one detail about which stocks, what % of the biotechs is over valued etc. This is a generalization and I think there are some Biotechs over valued, but ACAD is not one of them.
This company took the first offer they could hook and it turned out to be $150 million. Because chances are they know this drug will be a tough sell. The chances of them ever seeing that other $775 Mil is nil. But at least they got some cash and can look forward to a few other milestone payments...but it will never be $775, never. Too much competition, new insulin Pens are out, insurance Co Pay's will be HIGH for this new product and you are looking at maybe 1-3% of the diabetic population will ever get a prescription for this med. So perhaps the company can move on to the next product. The really big negative here is this stock has created a TON of BAGHOLDERS....over and over this stock has disappointed and now a ton of investors are underwater. They may NEVER get their money back.
So for "fun" I calculated a full Fib Retrace ( 61%)using a bottom of $5.25 and a top of $11(line chart) and I got $7.49, its already past that so you might be looking at the bottom. Gonna check the candlestick numbers.
Did he make this #$%$ up or is this a well known and used term?
They are nowhere close to closing out their losing position, and most Longs & investors saw right though the MF Article. It was put out on a Friday because Fridays tend to be weak anyway.
So when the stock starts to move higher again, the Street#$%$ will put out their own negative article. List how risky it is to hold shares. They will give examples of other companies that filed a NDA that got crushed etc. Man this stuff is Old Hat.
1) Issuing too many shares 2) Most likely they had little insight of the current drug competition in the Diabetic Rx market. Unrealistic projections of 10% of the diabetic market ( that will never happen and could be grounds for a CLASS ACTION ) 3) Poor response to Shareholder Value. 4) Poor execution to releasing a new drug 5) Building too much debt 6) Poor choice in Partnership. .....etc etc etc....
After many years watching Bio Techs...I have noted the companies that put out a lot of announcements tend to put out worthless FLUFF. The companies that are more conservative with their announcements tend to put out REAL NEWS with GREAT IMPACT.
When you use a drug off - label you are putting you medical license on the line. If anything goes wrong...even if not directly related to the drug...you can get sued and if you lose ( or settle for $30K or more in Calif.), you get reported to your states Medical Board that issued your licence. Remember in ADP, you will be dealing mostly with the reaction of the RELATIVES, NOT THE PATIENT. So if the relatives perceive the situation in a negative way, they will sue you.
You ever read the side effects of ANY drug you use? It is like a mile long of possible side effects that might occur and how you should be cautious in your prescribing. For the average doctor, they probably would'n't prescribe a new off label drug, but they would refer to a specialist ( Neurologist ). So if the Neurologist wants to give the drug its his/her decision. Now if a Neurologist advised me...say over the phone...to give an ADP patient Pima...I would say, he/she would have to call it in to the pharmacy. I can not do it since its off label and a new drug. In that way IF something did in fact go wrong...say the patient feel out of bed- hit their head and died, I would still be named in the law suit being the Primary physician ( I was a GP) but the primary person being sued would be the Neurologist. Not me. I would not get reported to the Medical Board. Specialist get paid the big bucks for taking that responsibility.
High Beta (ACAD 2.75) stocks esp biotechs, always attract shorts. Most longs here held this when it retraced down to $15+, we didn't sell then. So now the strong hands gripping tighter as the NDA approaches. Shorts starting to figure it out.
Now, once the drug has been used off label for a while say 1 year and doctors start to feel more comfortable with it. Then yes, many ( GP's, Family Med and Internist) non-neurologist would probably start to prescribe it themselves.
this stock sucks a green weenie. Sell this DOG and move on. Believe me, you will only lose more. Many are hoping to get out close to even....it ain't gonna happen. Whats killing you now is pure greed. You are thinking it will POP up...don't hold your breath, any so-called rally will be a dead cat and trap more newbies and make the shorts richer. Now bagholders want out- any POP will be sold off and heavily shorted. By the way, if you would have listened to me it the first place probably June July, and bought ACAD, you would be about $5 per share UP....with a stock heading to the $30-40 range. Pour the Kool-Aid down the sink and face reality.
Insurance coverage is ALWAYS an issue with new drugs...believe me i have over 30 years as a medical provider.