Long/short equity, research analyst, biotech, healthcare

Prana Biotechnology And MannKind Corp.: Bad News Obeys Its Own Special Laws

Nothing travels faster than the speed of light with the possible exception of bad news, which obeys its own special laws

Douglas Adams - Hitchhiker's Guide to the Galaxy

I find this quote from the Hitchhiker's Guide to be particularly apt when thinking about how the biotech sector operates in general, and especially when considering MannKind (NASDAQ:MNKD) and Prana Biotechnology (NASDAQ:PRAN) in particular. Namely, these two companies are somehow able to give investors bad news without it sinking into the collective mindset of the investing community - at least not yet.

Prana, for example, released negative results from their Phase 2 trial for Huntington's Disease yesterday, but the stock still exploded nearly 50% upwards at one...

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