Encysive Pharmaceuticals (ENCY) Message Board

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Biotech / Medical : Encysive Pharmaceuticals (ENCY)

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To: tuck who wrote (187)	6/22/2007 3:38:40 PM
From: tuck	Read Replies (1) of 205

So, according to Given on the CC, it is basically an issue of the FDA violating the SPA. I am surprised to see no discussion of this. If the FDA is allowed to get away with this, it seems to me the whole SPA law is worthless, and any company whose valuation includes some kind of premium based on an SPA might as well have that taken out of the share price. As for ENCY, it doesn't much matter now. With Ambrisentan on the market, its hopes to do much in the U.S. are basically zip. The only way ENCY could salvage the situation is by suing the FDA for damages because of the violation of the SPA agreement. This seems highly unlikely, though it would perhaps be just. Even if it happened, it would take years, and the amount collected would likely not offset ENCY's actual losses due to the FDA's intransigence. If the FDA had not insisted on jimmying the data, ENCY would have about a year's lead in the marketplace; the damage is huge, hundreds of millions. I had lightened my position ahead of this, but am still hurt. ENCY said they expected to make their strategic alternatives decision soon. Holding the position to exit on that news. Really pissed at the FDA. Tuck

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