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The question I have at this point is regarding the disconnect between how the market/average AMBS investor views the latest news compared to how AMBS/scientific community/pharma industry views it.

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I believe you are 100% correct Tanis, the "disconnect" is definitely an issue with the average investor, myself included, as I have limited education in the bio field. This is only the second bio stock I have traded as I got burned on the last one I played. The volatility can be fun to some but most times I like predictability.
AMBS has a solid foundation in the people on board alone besides the science, that being said, I continue holding. The staff on hand tell me the Company is in good hands even though at times I question the approach of GC.