Can Fite screwed over its shareholders with its preliminary release of results. One month to release results after trial completion is not enough time for an adequate analysis.
In the preliminary release:
The proportion of patients treated with CF101 who achieved at least a 75% improvement from baseline in disease severity at week 12, as measured by PASI 75 was 8.5% vs. 6.9% in the placebo group. With respect to PGA, 6.4% of patients treated with CF101 achieved clear or almost clear skin at week 12 compared to 3.4% of the placebo patients. CF101 was found to be safe and well tolerated.
How will Can Fite reconcile the above with what they are saying now?
No, they did not leak information, they misled investors with the annual report. Not gloating, I am trying to put this in perspective for those out there still holding stock or contemplating buying.
They intentionally misled investors with having high hopes for the trial results when they knew the primary endpoints were not met. Why did they do that? Who was selling on that news on Friday?
I think they will be in trouble with the SEC for withholding material information and releasing information that was materially wrong intentionally. Should have withheld the annual report and revised it accordingly once they knew the results 1 - 2 weeks ago. How much more evidence do you need?
I was seriously thinking of buying back in Monday and would have lost a lot if I had. Their mechanism for A3AR failed, and that is what is being used for their other trials as well.
Putting out an annual report on Friday claiming confidence in their test and then on Monday releasing results that showed the test failed to meet primary endpoints. Fraudulent.
And you believe they had no idea what the results were on Friday, but by Monday morning they were ready to release the preliminary results? CAN Fite knew what the results were last week and were preparing for the release. The company needs to be brought on the carpet by the SEC and the lawyers. The annual report should not have been released - they had material information which impacted the annual report.
I sold my shares on Friday, except for 381 shares and lost around $200 on those, but made $20K on my sale. If I had waited till Monday, I would have lost around $7K.
What Can Fite did the investors in their company was unethical and violated SEC rules. They had material information which impacted the annual report and the share price and released a report that was not accurate and did not disclose the material information.
How you can defend this company is beyond belief.
Don't you realize that the A3AR receptor did not show efficacy? The patients were pre-selected for exhibiting high concentrations of A3AR - should have made the test more successful.
The CA\NF pipeline is built on the A3AR receptor theory - which just failed.
The risk of their other drugs working is now much higher that they won't.
You are disregarding every sound principle of investing and common sense. Good luck.
First one in process. I think they have a good case against Can Fite. The timing of the annual report and then release was very unethical - report was stating they expected good results, when they knew the results were bad.
However, investors will never see any of the proceeds from the lawsuits, lawyers take everything in fees. They are not there for the investors.
They used the test prior to the CF 101 trials to pick out the patients. That is why the other tests are now higher risk.
You know, to release the annual report on Friday and indicate high hope for the test, when they knew the top line results showed the endpoints were not met is totally unethical and misleading.
I feel bad for the investors who were misled by this company. Over the weekend, I was contemplating buying another 20K of shares on Monday, depending on what the price did. Thank god, the results were released - at least for me.
What Can Fite did is reprehensible and I hope the SEC takes action with their shares on the market and that the lawyers have a field day. Won't do the average investor any good.
Very bad advice. A3AR did not work as planned and that is the key to Can Fites other trials as well. You need to sell and recoup while you can.
The biomarker was seen as a big boon, however, look at the below from the company. The present test was based on elevated A3AR expression levels. If you are in over your head with this stock, I would advise getting out and recouping what you can. Buy back later at a lower price if you want.
"Only patients with elevated baseline expression levels of the biomarker A3AR were enrolled in the study."
A3AR is present in high concentrations in inflammatory cells and cancer cells. Can-Fite's proprietary drugs target and bind to A3AR, causing cancer and inflammatory cell apoptosis (programmed cell death). This creates a targeted anti-cancer and anti-inflammatory effect, while leaving normal cells unharmed. Identifying patients with elevated A3AR levels would indicate which patients would benefit most from Can-Fite's drugs, thereby offering personalized medicine.
"The completion of the development of our commercial A3AR biomarker test kit comes at a very important time since we plan to use the test kit in our upcoming advanced clinical studies. We believe the test kit will create efficiencies in our trials in patient enrollment and monitoring. As we progress into late-stage clinical trials for CF101 in auto-immune diseases, our A3AR biomarker test kit is ready for wide-scale use to help doctors and their patients identify who will be most responsive to Can-Fite's drugs. We believe these patients can significantly benefit from personalized medicine due to the high degree of clinical heterogeneity," stated Can-Fite CEO Dr. Pnina Fishman.
If you want to wait for the other CANF trials, best bet is to sell and buy in later. Stock will go much lower from today. Not bashing, just based on past history with other biotechs. Company will need to dilute at some point to raise capital.
I would set a buy point at around $1.50.
Remember the risk has increased, the pre-testing to show positive results was done prior to this test as well.
Emotional attachment is very bad in the market. CANF will hit the low $1s in a couple of weeks.
Watching NVGN and daytrading TCK - TCK has been a boon for a good 10% gain at least everytime it gets to the $13 range for the last 4 months.
Talk about dumb luck, sold on Friday, except for 381 shares - I thought the company would announce a delay in the results report - 1 month to release results is very unusual.
I don't like the partial release and now the wait for full analysis of the secondary endpoints. In this case, the secondary analysis may have had good news that offset the bad news to some extent. Not looking good for the company.
Can Fite made a mistake in releasing the annual report prior to the results. The report was very leading in implying positive results on Friday and then on Monday releasing the results and saying it failed to meet endpoints.
I don't know how many of the investors on this board have had experience with biotech firms going through trials, but if you do, you do know that results are not released within one month after completion of testing.
To release any data before the full analysis and full reviews have taken place, not to mention the write-ups and discussion of results, is just begging for a potential lawsuit.
Would be more feasible if they had said July - August timeframe for release of results.
I have 13K shares, bought in the low $3's, so I hope for good results, but an announcement so soon after the completion of testing just doesn't sound right.