Calm down, everyone, calm down. The only real change today is that nothing much has changed. It only feels like bad news because the ambient temperature increased due to wild stock board speculations that Xoma, uncharacteristically, would release specific numbers of deaths and morbidities before proceeding to the FDA. Remember, folk, this is the company that hid the truth from investors about end points in the Neuprex P-3 for more than a year because "the FDA made us do it."
That said, in hindsight I wish --
(1) Ellen had told Castello to scotch all the message board noise early on by saying categorically "we will not release any info about the trial until we have finished our analysis and given the FDA time to review it with us."
(2) Castello possessed the spine to tell his lawyer, "Look. Having you sit there and read that stupid Safe Harbor statement is going to make me look like a Teamster president being hauled before the Senate Organized Crime Committee. So stay out of my way."
(3) George had heard the number to punch correctly for asking a question (I think it was # 1 not # 31). Then he could have said, "Mr. Castello, why on earth did you call a conference to announce you couldn't say anything at the conference call?"
(4) Michael Murphy bought his own b.s. (which I doubt) and invested his own money (which I am fairly sure he didn't.)
It may be that short-term damage was done to the stock price. It may be, too, that Xoma's management once again has proved it has two left feet when it comes to dealing with the investment community. None of this detracts from the long-time point of Xoma longs like RobertK, George, Bluegreen, Texas, and others -- the science will out, for good or ill.
That it hasn't happened yet doesn't mean it won't. It just means you shouldn't get too excited every time Castello decides to open his mouth. He may only be intending to take the Fifth Amendment -- on advice of counsel, of course. |
