Investing against a company’s success may seem morally wrong at first glance, but if said company isn’t being honest with their consumers and investors it can be a great way to force change. This is what activist investor Sahm Adrangi does, and he’s profiting while making a difference. The 2003 Yale University Graduate and founder/Chief Investment Officer of Kerrisdale Capital Management LLC. sets his sights on what he considers bad businesses in the biotech, mining, and telecommunications industries specifically. Read more about Sahm Adrangi at Benzinga.
While making headlines in the past for short selling US-listed Chinese companies who used reverse mergers to enter the US stock exchange, Sahm Adrangi has recently become known for his predictions of drugs in development that were destined to fail from the beginning. His latest target is a drug in testing to treat AL amyloidosis known only as NEOD001. The drug being developed by Prothena is ready to enter Stage III testing despite the fact that the much-hyped formula’s initial results were lackluster. In fact, according to Sahm Adrangi, the positive results may have nothing to do with the drug and may be the product of natural occurrences in the disease’s progress. After revealing his own research to the public, Prothena’s stock plummeted by 8% almost immediately. Follow Sahm Adrangi on twitter.com.
Incidentally, this announcement came on the heels of 2 previously successful short selling attacks instigated by Sahm Adrangi on companies hyping drugs that Sahm Adrangi knew wouldn’t work based on early phase test results. The failure of these medications, Bavarian Nordic’s Prostbac and Sage Therapeutic’s brexanolone, came within weeks of each other and investors are taking heed to Adrangi’s warnings. By the same token, the results of the prostate cancer vaccine, Prostvac, do not bode well for Bavarian Nordic’s other vaccines for lung and bladder cancer in development. While this is bad news for patients and investors, it’s better to know rather than put hope in a medication with no potential. Bristol-Myers Squibb had already invested $60 million into Prostvac for licensing and was expecting to put in another $80 million after Phase III results were released for a medication that did for fare any better than a placebo.
Know more: https://www.hvst.com/user/sahm-adrangi