Galectin Therapeutics announced phase 2b trial results that clearly show statistical significance. Yet Adam Feurenstein (AF) a known short crys foul on his tweet “many $GALT red flags raised this morning. They really data-mined the f—k out of this study.” This was approximately 8:10AM EST because GALT had released the presentation online. This is exactly a repeat of what happened on the FX results presentation in 2014, you would think that management would learn from their mistakes. Giving the shorts the headline they need before the market opens is ridiculous. Someone should get fired. Possibly the investor relations firm but Traber does call a lot of the shots. The evidence that this attack was ready to go was indicated in the put volume in the December 2 puts. About 2600 puts traded yesterday. Fast forward to the time of this article and 2700 puts traded closing out the position. If you are a long you just got played by the Adam Fuerenstein Club! They cashed out and the price reversed up. Let’s hope the intelligent investors read the entire presentation and see that the results for half of the patients met or exceeded the endpoints. This should be enough to do a simple Phase III quickly to get approval and tremendous interest from a big pharma as Stephen A. Harrison, M.D., one of lead investigators of the NASH-CX trial, said in the Q&A. So it will be approved for only a few million patients initially.
Great buying opportunity, Thanks AF.
From the presentation summary slide
- This trial demonstrated that GR-MD-02 had a statistically significant and clinically meaningful effect in reducing the primary endpoint measurement of HVPG in the subset of patients with NASH cirrhosis who did not have baseline esophageal varices (50% of total patient population); this effect was seen regardless of the severity of the patient’s baseline portal hypertension
- There was an important drug effect in the total study population on liver biopsy, with a statistically significant improvement in hepatocyte ballooning (cell death) with both doses of GR-MD-02
- There was a statistically significant reduction in the development of varices in drug-treated patients compared to placebo; prevention of the development of varices is a clinically critical goal in NASH cirrhosis.
This Bear Raid was the equivalent to sitting at a graduation commencement speech and then observing some silly pranksters lighting some fire crackers and then throwing them behind the audience and then yelling gun. You can imagine people walking over people trying to get out of the chairs hurting each other to get out of the way. Since you took the time to know what happened all you can do is stay seated and try to calm the people in your immediate vicinity because you know there is no threat. It's a hoax know as FAKE NEWS. That's what happened today so in the graduation scenario when the police come in to secure the area and try to figure our what happened they realize there was no threat and the commencement continues. AF and his crew decided to crash the party because Traber didn't seem to have any security for the event. It was announced on a Monday and less then 12 hours later being presented. This news was fantastic today but it pales in comparison to how robust the cancer trial was. A full on press conference inviting analysts and building some anticipation would have been a much smarter way to go. This presentation was solid and deliver was better than normal but hasty in logistics. The fact remains that the data was fabulous and the graduation to a phase 3 with partners will ensue.
Disclosure: I am/we are long GALT.