Truth in Corporate Justice: Shareholders Lose on Pharmaceutical Setbacks
October 28, 2006
Distributed by Worldwide Free Release Press™
Oakland, Calif–The information contained herein is a product of Truth in Corporate Justice LLC (“TCJ”) of the Worldwide Tree Group. You may contact Truth in Corporate Justice LLC at (310) 459-2560 or (800) 610-4998 or Neil Rothstein ([email protected] ) directly by cell phone at (619) 251-0887. Truth in Corporate Justice LLC (www.worldwidetree.org) is a limited liability company under the umbrella of the Worldwide Tree Group that scrutinizes, supports, and endorses law firms, both plaintiff and defense, that adhere to and are dedicated to the highest ethical, competency and zealous advocacy in order to maintain integrity in our legal system.
TCJ: Replidyne (NASDAQ:RDYN)
Can’t Find Its Way through the Forest
On October 23, 2006, Replidyne (NASDAQ: RDYN) disclosed that the food and drug administration issued a non-approvable letter for their marketing of Orapem (generic name: faropenem medoxomil). Without more testing, the FDA said it would not approve the drug. In December 2005 Replidyne submitted its application to the FDA to approve the antibiotic to be used for treatment. This antibiotic is to be used for acute bacterial sinusitis, community acquired pneumonia, acute exacerbation of chronic bronchitis and uncomplicated skin and skin structure infections.
In February 2006 Forest Laboratories (NYSE: FRX) entered into a contract with Replidyne to market the drug. As of about 1pm on Monday, October 23rd Replidyne was down about 48% or trading at about $5.30 a share. Meanwhile, Forest Labs was down almost $3.00 per share. In a joint statement both companies stated that further trials for this drug would require about two years of clinical studies. Forest Labs hopes to get the drug approved for at least two of the conditions in this timeframe. Replidyne went public on June 28, 2006 after offering 4,500,000 shares of common stock at $10.00 per share to the public after filing registration statement with the SEC on April 6, 2006. At this moment it is trading at 5.20 per share. Forest Labs is trading at $47.88 per share
TCJ: Renovis’ Stroke of Genius Dumps
Lost revenue of Renovis, Inc, (NASDAQ: RNVS ) a biopharmaceutical company, grew to a $7.4 loss compared to 6.3 million last year. The company is focusing on internal research in light of a development discontinuation with AstraZeneca (NYSE:AZN). They were collaborating on a stroke medicine NYX-059. The drop in revenue was due to the completion of a funded project with Genentech, Inc. (NYSE: DNA). The shares of Renovis have dropped over $10.30 per share and were trading at about $3.59 per share. AstraZeneca is trading down $5.02 per share and was holding above $59.16 per share.
TCJ: Neurometrix Down – Worries On Insurance Billing
NeuroMetrix (NASDAQ: NURO) Inc. set a 52-week low as the medical-device maker expressed continued serious worries about physicians’ ability to bill insurance companies for procedures using its automated nerve conduction test. Shares of the company dropped $4.63, or 23 percent, to $15.22 yesterday in early afternoon trading on the NASDAQ Stock Market. It closed at $15.97 per share. Chief Executive and founder Shai Gozani had told investors that the market for the company’s products could top $1 billion.
NeuroMetrix makes a strap-on device that allows physicians, even general practitioners, to test for problems like carpal tunnel syndrome and back pain, eliminating the need for a trip to the specialist. The company’s issue is that revenue could soon start to dry up as more medical carriers deny physicians reimbursement requests for the procedure.
NeuroMetrix sells its handheld NC-stat machine for about $5,000. Disposable sensors used to test nerve responsiveness cost about $35 each, and four are typically required per test. Gozani had told investors that it would cost a physician about $150 for the four disposable sensors needed for an NC-stat nerve study and that the physician typically nets $200 per patient tested. That stock closed yesterday at $15.94 per share.
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