It’s no secret that Sahm Adrangi likes to make his mark – and this time, his giant crosshair is aimed at another biotech company.
At Kerrisdale Capital, their very public way of going about things has allowed them to show the world that Proteostasis’ recent cystic fibrosis study is “absolute nonsense.” Sahm Adrangi is going after the biotech company, calling their work a “bomb in the making”.
Vertex has been sure to build a market that they can excel in, but Proteostasis wants to make their study seem much better than it really is. In reality, the data shows that there were four patients in the study that had a huge drop in lung performance, which is approximately 1/4th of those in their study. The study was conducted over a 28-day period to ensure that it favored Proteostasis and they could pump out the drug quickly.
The actual report states that they PTI-428 group in the study improved by only 2.5%, whereas the patient group that acted as a placebo worsened almost 7%. This large number of those worsened just added to the number that stated there was a relative improvement of “9.2%”, despite 6.7% being bad. In actuality, this cannot and should not be replicated in a trial that’s larger.
Kerrisdale’s report states that the data from Proteostasis is full of doubt and cannot reliably measure the success of their own drug, causing others to believe that they don’t even know the fundamentals of their own product.
They’ve put themselves on a pedestal in their minds, only to look unreliable and untrustworthy to investors, other researchers, and patients who do their research.
In the study, the PTI-428 section failed to increase the protein CFTR levels a significant degree, even with the drug, but the company has since ignored those unpleasant results. The paper that these results were announced in was written by three of the company’s employees.
Any other data information has been ignored by the company, states Adrangi’s Kerrisdale Capital team. They also boast that the company doesn’t give true or actual results, meaning that they’re dancing around the truth and only trying to make themselves look good, despite the numbers being bad. Kerrisdale states that since “there is no lead drug”, the company is only worth cash – a huge decline in value.
Proteostasis has recently announced plans to make the most of their recent swell in shares – a robust 9 million, along with RBC Capital and Leerink as just some of the book runners in tow with them. Once the Kerrisdale report made way though, the shares dropped up to 20%. We expect to hear more soon, as Prothena’s data is coming up in the second of four quarters.
After the attack against Proteostasis and their recent cystic fibrosis trial data, it’s been concluded that PTI’s data has been misleadingly “spun” and the data given to the world was “selectively disclosed”. Their weak data didn’t stop them from coming out with results; in fact, it only made them come out and appear greedier than ever – putting a huge target on their back.