Zonagen lie #6:
Well, perhaps the word "lie" is a tad too harsh...how about "omission" or "misleading
statement".
I direct the reader to - again - read the first paragraph of the following press release
very carefully:
pslgroup.com
----------------------
THE WOODLANDS, Texas, June 24, 1996 -- Zonagen, Inc. (NASDAQ:ZONA,
Pacific ZNG) announced today that it has received notification from the United States
Patent and Trademark Office that the patent covering the use of VASOMAX(TM) as
a treatment for erectile dysfunction (impotency) has been allowed...
-----------------------
I think it would be fair to say that when Joe investor receives a phone call from a
certain Texas "financial advisor" with a pitch to buy this fine, young company...and then
the advisor sends him some promotional literature that includes the aforementioned
press release, then Joe investor might...just might...get the impression that Zonagen
developed a brand new drug and through its own efforts filed a new patent application
which was subsequently approved. After all, Joe investor can be confident that this
certain Texas "financial advisor" has Joe's best interst in mind. Now if only Joe investor
took a little time to actually dig up the patent and read the title page:
patent.womplex.ibm.com.
Joe then scratches his head and says, "Hey wait a minute, this patent was filed 3 years
ago by some Zorgnioti guy, doesn't cover the Vasomax formulation, and Zonagen is
only the assignee! Imagine that!" With a little bit more digging, Joe would have found
out that the patent was paid for in stock (at much lower prices than Joe is paying). Joe
would also be astonished to learn that the certain Texas "financial advisor" in our story
also was paid with some cut-rate stock.
What a coincidence. |
