RNA Interference Stocks: Invest At Your Own Risk

I have long told our investors to avoid RNA interference stocks because the science is unproven. If you want to speculate, you can do so on more proven science. I have also written that investing based on the hope of a major partnership or buyout is a sucker’s game. Well, these two rules backfired on me last week.

Alnylam (ALNY) announced a ginormous (just added to the official Webster’s Dictionary, much to my kids’ pleasure and my discomfort) drug deal with Roche (RHHBY.PK).

I don’t care! You need the metaphorical leather butt to do what I do -- nevertheless, in the interest of public service I have put together a list of names you can investigate on your own, as investors frantically search for RNA stocks:

• Alnylam
• AP Pharma (APPA)
• Cytrx (CYTR)
• Genta (GNTA)
• Isis Pharmaceuticals (ISIS)
• Invitrogen (IVGN)
• Nastech (NSTK)
• Sangamo Biosciences (SGMO)
• Sentek [SNKTY]

This is your research job and many of these companies seem to have done as much work on their press releases as they have on RNAi.

What is RNAi?

In the past decade or so, RNA -- a cousin of DNA – has been shown to have a much more prominent role in cellular activity as a regulator of behavior. Modify RNA behavior and you can modify a disease. A couple of products are wending their way through the labs and development process. The closest one, for age related macular degeneration, is from what used to be called Sirna, now part of Merck (MRK), the first RNAi deal to bite me you know where.

Nothing else appears close.

RELATED READING:

Micro RNAs: The Last Frontier of Medicine?

RNAi developments by Alnylam, CytRx Highlight Tuesday's Biotech News

Merck Looking To Become RNAi Technology Leader

Comments

[cristallshort:]

Take a look at ACEL.

2007 Jul 16 12:52 PM

[jimmy Turano:]

Mr.Shulman,
Still waiting for your perspective regarding 'nstk' since you promised last Friday, July 27th, 2007.
Your viewpoint is needed please!
Your article July 16th was crisp and informative.(RNAI)
But 17 Touts by Jimmy Cramer is a bit much on nstk based on your article, don't you think?
I look forward to your intelligent response!
JIMMY T

2007 Aug 02 09:55 AM

[jimmy Turano:]

MR.SHULMAN HAS AVOIDED THE QUESTION GOING ON 12 MONTHS SOON. SO I'LL GIVE YOU MY VIEWPOINT THAT HASN'T CHANGED FOR 1 YEAR NOW. THEY TOUT THIS STOCK TO DEATH AND MURPHY'S LAW ALWAYS IS EVER PRESENT. PARTNERSHIPS BREAK UPS ARE COMMON, DILUTION IS CHRONIC, REVENUE IS DOWN, EXPENSES ARE UP, NSTK ACCOUNTS ISSUED A WARNING OF CONTINUANCE LETTER, AND AFTER 24 YEARS THE COMPANY HAS ACCOMPLISHED NOTHING. THE BURN RATE SHOULD BALANCE THEIR RNAI RESEARCH TO A SCREECHING HALT. NOW MR.SCHULMAN YOU CAN START GOING ON YOUR VACATIONS LIKE LAST SUMMER AND ENJOY THE BEACH.

2008 Jun 07 08:57 PM

[jimmy Turano:]

OH BY THE WAY THE STOCK WENT FROM $18 DOLLARS TO $1.16.
AND THEIR LATEST CONFERENCE CALL WITH THEIR OWN RESEARCH FIRMS THAT FOLLOW NSTK WENT WELL LIKE A PLAY ON BROADWAY!
ON COURSE FOR NEW LOWS, AND $1.00 BID BY AUGUST 21ST.
I STILL WOULD LIKE TO KNOW WHY THEIR CHIEF FINANCIAL OFFICER RESIGNED? SOME RECORD TO DATE & SOME STATISTICS

2008 Jun 07 09:00 PM

[jimmy Turano:]

MRNA-DEC.11TH NOW $.25 CENTS
QUITE A TASK MR.SHULMAN ACHIEVED, DON'T YOU THINK?
I HAVE BEEN ACCURATE ON THIS STOCK GOING ON 18 MONTHS TO DATE. WITHOUT A PARTNER SOON, THEY HAVE ABOUT 9MONTHS OF CASH ON HAND TO PAY EXPENSES AND THEN THAT'S IT.
FINDING A PARTNER DURING A SEVERE CREDIT CRISIS AND UNSTABLE STOCK MARKET ISN'T GOING TO BE EASY WHILE THE CLOCK IS TICKING.
SO WHEN YOU TOLD INVESTORS TO STAY AWAY FROM RNAI STOCKS, YOU TOO, COULDN'T HAVE BEEN MORE RIGHT ABOUT THE SUBJECT.
ENJOY YOUR NEXT VACATION!
HAPPY HOLIDAYS!

2008 Dec 11 09:59 AM

[jimmy Turano:]

MAY 27TH, 2009
DEAR MR.SCHULMAN, BEFORE YOU GO ON VACATION AGAIN, HOW ABOUT YOUR PERSPECTIVE ON 'MRNA' FORMERELY 'NSTK'
IN 8 WEEKS THE TWO PARTNERSHIP DEALS
CAUSED A SHAREHOLDERS FEVER DRIVING THE STOCK PRICE FROM HIGH $.20 CENT RANGE TO $1.99. AFTER A MORE THAN 600% RUN UP, IT IS SLOWLY GOING DOWN,
CLOSING TODAY AT $1.50. PERSONALLY, I BELIEVE IT BELONG BELOW $.50 CENTS.
THEY ARE A PRE-CLINICAL STAGE COMPANY, AND JUST REGAINED COMPLIANCE BEING OVER ONE DOLLAR, BUT I STRONLY BELIEVE IT IS HEADING BACK WHERE IT BELONGS, AROUND $.50 CENTS TO MAYBE LOW $.70 CENT RANGE.
CAN YOU PLEASE SOBER THE SHAREHOLDERS UP BEFORE YOU START YOUR LONG WALKS ON THE BEACH?

May 27 04:59 PM