Wynn dug into activity by those shorting his stock.
"As long as the short players fool around for $1 or $2, that's fine. But ...the exchanges don't enforce the rules of naked shorts. So, I mean, it's unconscionable manipulation of the stock that occurs. They open up every morning, and the high-frequency traders in the shorts have a ball selling shares, and then value buyers step in the afternoon and they cover the shorts. I mean, it's regular casino activity." The company currently has about 14 million shares short, or almost one-quarter of total float.
Some of the late-stage, mid-cap companies that I like are Acadia Pharmaceuticals Inc. (NASDAQ:ACAD), Medivation Inc. (NASDAQ:MDVN), Intra-Cellular Therapies Inc. (NASDAQ:ITCI), Portola Pharmaceuticals Inc. (NASDAQ:PTLA) and Synergy Pharmaceuticals Inc. (NASDAQ:SGYP). Several of these companies have FDA-designated breakthrough technologies, are past Phase 3 data hurdles, and are on their way to FDA advisory committee [AdCom] meetings. Acadia, Portola and Synergy will have products on the market before the end of 2016, and with labeling that addresses large, unmet medical needs.
Acadia has its AdCom meeting on March 29 for Nuplazid (pimavanserin) for Parkinson's disease psychosis. It's hard to handicap how that's going to go, but the FDA obviously sees a pressing need for the drug. The stock has been cut in half, but the company has a tremendous amount of cash-about $0.5 billion ($0.5B) on its balance sheet, with an enterprise value [EV] of $1.85B.
The risks are fairly limited given what we know about the data. If Nuplazid gets FDA approval, it will be on the market probably by August or September. It will do a couple hundred million dollars in sales in 2017, and $1B by 2019-2020. The opportunity is huge. The company will probably have an application in at the European Medicines Agency in 2017 or 2018. This company is completely cashed up, and it's a tremendous value.