This deal with a private family guarantees that wh
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Posted On: 10/09/2018 9:00:37 AM
This deal with a private family guarantees that what happened to OCAT will NOT happen to IPIX. I am very happy to hear news of this deal.
OCAT was attacked by Mako, first with articles on Seeking Alpha (the article even did the same thing about "empty offices" ) and then Adam Feuerstein started attacking them on Twitter. 3 or 4 days before OCAT was due to release data on their pivotal clinical trial, Feuerstein tweeted that he had "advance information" that the trial had failed badly. Their stock tanked even further.
Then OCAT released their data -- it was stellar -- truly great results for their clinical trial.
BUT -- the stock price did not recover even to the levels it was before the Feuerstein attack. And, OCAT had had a series of bad CEOs who got the company into high-interest-rate debt, which they could not service.
So, a couple of weeks after the great clinical trial data, OCAT sold itself to avoid bankruptcy. Almost all shareholders lost a lot of money, as the company was sold at a fire-sale valuation that was less than what its pre-clinical-trial price was that many long-term investors had as their basis.
With this deal, Leo is sending a message to Big Pharma that they either have to offer a fair price (regarding the term sheet, AND to other potential partners) because IPIX is NOT going to be forced into a horrible deal, as OCAT was.
Take that, Mako and Feuerstein.
OCAT was attacked by Mako, first with articles on Seeking Alpha (the article even did the same thing about "empty offices" ) and then Adam Feuerstein started attacking them on Twitter. 3 or 4 days before OCAT was due to release data on their pivotal clinical trial, Feuerstein tweeted that he had "advance information" that the trial had failed badly. Their stock tanked even further.
Then OCAT released their data -- it was stellar -- truly great results for their clinical trial.
BUT -- the stock price did not recover even to the levels it was before the Feuerstein attack. And, OCAT had had a series of bad CEOs who got the company into high-interest-rate debt, which they could not service.
So, a couple of weeks after the great clinical trial data, OCAT sold itself to avoid bankruptcy. Almost all shareholders lost a lot of money, as the company was sold at a fire-sale valuation that was less than what its pre-clinical-trial price was that many long-term investors had as their basis.
With this deal, Leo is sending a message to Big Pharma that they either have to offer a fair price (regarding the term sheet, AND to other potential partners) because IPIX is NOT going to be forced into a horrible deal, as OCAT was.
Take that, Mako and Feuerstein.
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