Here's a WSJ article about the heavily-shorted Biomatrix:
interactive.wsj.com
October 22, 1999
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Biomatrix Is the Target
Of Some Harsh Rumors
By AARON ELSTEIN
THE WALL STREET JOURNAL INTERACTIVE EDITION
If you read what some people are saying about Biomatrix on stock-chat message boards, it seems like you'd be crazy to buy its stock.
The biotechnology company is artificially inflating its profits by pumping more products to distributors than they can possibly sell, anonymous message-board participants say. If that isn't bad enough, other postings say Synvisc, Biomatrix's lead product, has deadly side effects.
"Not only are the side effects of Synvisc more common than almost any other medical treatment ... they are also extremely dangerous and lethal. That is why doctors refuse to use Synvisc and why Synvisc has no end-use demand," writes one person on a Yahoo! Finance message board (quote.yahoo.com).
The identity of that poster couldn't be determined, and there appears to be no evidence to back up the assertions. Biomatrix says Synvisc, a treatment for pain associated with osteoarthritis of the knee, is safe. Brad Stone, a spokesman for the U.S. Food and Drug Administration, says the agency hasn't issued any warnings or recalls related to Synvisc.
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