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  • First, Arena's SEC Correction? Is It Time For Writers To Follow Their Example? 6 comments
    Sep 1, 2013 5:17 PM | about stocks: ARNA

    Arena was dragged through the mud and CEO Jack Leif has been called every name in the book because Arena filed a 2nd SEC filing within 24 hours of the first.

    There's an ancient saying that says, "You reap what you sow."

    Here's a quote, a response from AndyBiotech to Adam Feuerstein on Twitter. Feuerstein is asking AndyBiotech who he thinks was spreading the rumor. AndyBiotech responds:

    No idea, I didn't get the IMS numbers until last night. Heard a fake # was cited by Spencer Osborne in an SA article

    However, Mr. Osborne has written on his own article in the "Comments" section the following:


    - Confirmed IMS numbers are just below 4,000 not above.
    - Week over week unadjusted is 11% not 18%
    - Symphony (unadjusted) is 4,204

    My typical source was not in Friday because of the holiday weekend. A number flew around the net in the morning. I waited quite a few hours trying to vet it out, but the holiday weekend was making that a challenge. I then received several communications from several people all saying that the number over 4,000 was indeed legitimate. The number is actually a bit over 3,800, which made its way with better verification this morning.

    This is a rather stunning revelation! After accusing Arena of giving the perception of "hiding" information from investors or calling into question Arena's CEO Leif we now see the table turned on Mr. Osborne. Still, to Mr. Osborne's credit, he posted his error with a correction. I applaud him even if it was slower than Arena's second SEC filing (that's humor).

    My viewpoint is that mistakes get made, but this turn of events should do us all good to remember that even with good motivations, castrating Arena's CEO in print can come back to haunt you. Better to just say, "I made a mistake and I apologize for my error."

    Just remember another old adage, "To err is human. To forgive is divine."

    SA writers are humans, and humans err. Therefore, I choose to forgive Mr. Osborne, but I sure hope that next time he makes a better effort of choosing his source(s) of information rather than a chat board. As SA's #1 biotech writer he has a lot of followers. As Spiderman says, "With great power comes great responsibility." Hopefully, SA's lawyers will respect Mr. Osborne's correction as an act of bravery and honesty.

    Hopefully we can all learn from our mistakes and give people like Mr. Osborne and Dr. Jack Leif the benefit of the doubt. Meanwhile I will continue to conduct much deeper research.

    Disclosure: I am long ARNA.

    Additional disclosure: Unpublished Instablog.

    Stocks: ARNA
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Comments (6)
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  • PEhrlich
    , contributor
    Comments (1702) | Send Message
    "Castrating Arena's CEO"??????? No hyperbole here.


    "SA's lawyers" - A bit of flare for the dramatic.


    "I choose to forgive Mr. Osborne" - Wow, he probably forgot your birthday too.


    This was more than a little overwrought of a response to an error in a blog post. You think he really pays $30K a year for an IMS subscription so he can write SA articles for a penny a hit?????
    1 Sep 2013, 05:41 PM Reply Like
  • Moral Investing
    , contributor
    Comments (66) | Send Message
    Author’s reply » Poetic flare is the spice of life, but thank you for your registering your perspective. Myself, I prefer double entendre.
    1 Sep 2013, 05:44 PM Reply Like
  • Spencer Osborne
    , contributor
    Comments (6619) | Send Message


    I did not use a chat board for my source. I, like many,did see the early morning number floated out there. I spent several hours trying to see if there was any validity to that number. After quite some time I had someone that is usually pretty accurate give some level of verification. At that point I also knew that symphony was above 4,000, by a decent margin, but not the exact number tally.
    1 Sep 2013, 06:55 PM Reply Like
  • PlainDealer
    , contributor
    Comments (86) | Send Message


    Thanks for the elaboration on your earlier comment posted on SO's article. I see the raccoon and SO don't want to be held to the same standard that they are trying so hard to justify applying to Jack Lief and Arena. Why am I not surprised? But I seriously doubt that anyone who is invested in Arena and has been following the comments of the raccoon or SO are surprised.


    It is wonderful how Arena continues on its drive upward in all relevant categories: sales, new drug development, business expansion, etc.


    2 Sep 2013, 02:41 AM Reply Like
  • Spencer Osborne
    , contributor
    Comments (6619) | Send Message
    Plain dealer....


    You can hold me to any standard you so desire.


    My standard....I accept my lumps and move on. I even explain what happened.


    Arena....has not explained anything.


    I guess I carry a higher standard after all.
    2 Sep 2013, 01:12 PM Reply Like
  • mrrock991
    , contributor
    Comments (82) | Send Message
    Interesting take, but trying to minimize Jack Lief's error by comparing it to Spenser's error is ridiculous. The reputation of ARNA investors and their enthusiasm continues to grow. When the first post hit referencing the IMS numbers, the author stated the IMS were not confirmed but that did not matter to any ARNA investor, like most wood-be facts they ran with it and the stock price moved up on these fake numbers. What was interesting at the time, no VVUS numbers were posted.


    CEO's have a fiduciary responsibility to their shareholders. Mistake aside, did he meet that with the filings? What is obvious is that something went wrong and including past errors, there seems to be a pattern developing which is not good.


    Authors can make mistakes and retract or correct, I actually appreciate these when done. Many writers at mainstream publications often don't do this and look foolish. The glaring problem to Spencer's rush to promote was the aftermath of commentary on SA, twitter and Yahoo boards. ARNA enthusiast already have bad reputation when it comes to reliability and some how it just got worse.


    Bottom line, when reading any information on ARNA, from any source, investor beware.
    2 Sep 2013, 08:24 AM Reply Like
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