Thanks muddphudd.
Looking at the portfolio companies of Paramount Capital I conclude that CYPB is one of their best performing stocks. Almost all other biotech stocks with which the company or Mr Rosenwald has an affiliation are down over the last two years. That is actually an understatement. Most of the stocks are down more than 50%, some are down more than 80%.
A quote from their website: "Dr. Rosenwald is also a director of the following publicly traded companies: Interneuron Pharmaceuticals, Inc., Neose Technologies, Inc., Atlantic Pharmaceuticals, Inc., Titan Pharmaceuticals, Inc., Avigen, Inc., Xenometrix, Inc., Ansan, Inc., Biocryst Pharmaceuticals, Inc., Sparta Pharmaceuticals, Inc., and VIMRx Pharmaceuticals, Inc."
If you look at the chart of some of these companies you get scared.
Most of the other portfolio companies have a bad performance, too.
Dr Rosenwald also has a historical affiliation with Advanced Tissue Sciences (ATIS) which he helped bring public at the time when he was with D.H. Blair (by the way D.H.Blair had to cope with a lot of problems lately). ATIS is also part of Paramount's portfolio. Interestingly enough ATIS is one of the big biotech desasters of the last few months. As a result they are facing a stampede of shareholder lawsuits.
Personally I conclude that the fact that Paramount is a major CYPB shareholder and continues to buy, doesn't have any value for prospective shareholders. Their track record seems rather weak. Although I have to admit that I haven't seen any specific performance numbers. Does anyone else have this info?
What's interesting: one of the few companies where the two Aries Funds operate with the same strategy as with CYPB is Repligen, the producer of Potein A. From the stock's performance it seems it is one of their better investments. Mere coincidence?
Is there in any way a connection between Allen & Co. and Paramount Capital? Could it be, that they work together on this project? Together they already own more than a third of the outstanding CYPB stock.
Harry
P.S.: I am long CYPB and may add to my position in the future if further due diligence shows positive results. |
