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Biotech / Medical : IPIC
IPIC 0.00010000.0%Dec 18 4:00 PM EST
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To: WeirdPro Randy who wrote (642)9/15/1997 4:47:00 PM
From: NeuroInvestment   of 1359
 
A few thoughts about this obviously distressing development:
1) IPIC does have significant liability insurance coverage, in the very small likelihood that they were to be found liable. AHP has been the major marketer earning the bulk of the profits since its launch, and they marketed to the general practice prescriber group, not to the limited universe of diabetologists and bariatricians that was Interneuron's responsibility
2) The fact that this is a very new phenomenon not seen in the European population over the past 10 years means that IPIC cannot be found culpable of marketing a drug whose possible negative effects were known. Pulling the drug today greatly reduces AHP and IPIC's liability: as of last Wednesday there were no plans to pull the drug: on Friday afternoon the FDA presented more case reports (again most of which involve the combination of a fluramine (Pondimin or Redux) with Phentermine) of valvular damage. The rapid response was smart, and ethical. The causal case is not yet made, but the marketing companies can demonstrate that they erred on the side of caution.
3) The market did not react as dramatically as many, including myself, might have expected. Given the increasing drumbeats of negative publicity recently, it was a case of the other shoe dropping, and to some degree had already been accounted for in the price drop from the 20-21 range.
4) While it would be naive to paint this as positive, the fact is that Redux has been deadweight on IPIC's valuation for several months. Perhaps this will clear the boards for the company to be viewed on the basis of the next three drugs in the pipeline instead of being thought of as that 'diet pill' firm.
NeuroInvestment
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