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Biotech / Medical : SNRS- Sunrise Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Sylvester who wrote (2839)	7/24/1999 6:38:00 PM
From: wl9839	Read Replies (1) \| Respond to of 4140

FDA Rejection Sends Sunrise Stock Plummeting By DAVID J. MORROW (NY Times 7/24/99) For most of this year, the chat on the Internet had it that Sunrise Technologies International Inc., a small California medical device company, was a stock sure to deliver a bountiful return. So far though, it has served up only heartburn. A government advisory panel voted unanimously Thursday to advise the Food and Drug Administration to reject Sunrise Technologies' new laser to treat farsightedness. The decision shocked a devoted coterie of investors who were convinced the remedy was a sure thing. Investors could not bail out fast enough. The company's shares plunged 75.2 percent, or $11.28125, Friday, to $3.71875. More than 27 million shares changed hands Friday, making the stock the second-most actively traded for the day. "This was their day, and they failed miserably," said Evan Sturza, president of Sturza's Medical Research in New York. "Sunrise Technologies has one product, one trick pony. And it just broke its ankle." Even though investors rushed in to buy shares during the last six months, analysts insist that most of them should have known what was coming. As is the case with many stocks that are touted on the Internet, investors tend to rely too much on cyberspace information instead of doing proper research. As it turns out, Sunrise Technologies made several recent disclosures in its Securities and Exchange Commission filings warning of financial woes at the company. In a document filed with the SEC June 18, Sunrise Technologies stated that the company's "working capital had been seriously depleted." The company went on to say that FDA approval for its laser device could be delayed substantially, causing an "adverse effect" on its business. Analysts said Friday that the Internet jabber told a different story. Internet investors had long speculated that Sunrise Technologies' laser treatment would not only be approved but eventually snatch a large share of the $11 billion spent each year in the United States on eyeglasses and contact lenses. Believing that, investors rushed to buy shares in Sunrise Technologies, eventually pushing the stock up 205 percent during the last six months. The stock hit its 52-week high of $19.50 July 13. While the Internet chat was encouraging to some investors, analysts said that the stock was also being pushed by doctors and sales people for prescription drugs and medical devices. Sunrise Technologies acknowledged in a recent SEC document that some of the 11 doctors who conducted clinical trials on its laser held shares of the company's stock. Analysts have questioned whether those positions might have biased the clinical trial results. A call to Sunrise Technologies Friday was not returned. "The doctors and other investors who were behind this stock thought the laser treatment was a lay up," said Sturza, who told investors last week that Sunrise Technologies' laser had little chance of commercial success. "Investors made the laser treatment into a trendy procedure. But it was actually very low-tech." The sudden plunge of Sunrise Technologies stock appears to have hurt more than investors. One broker complained Friday that many investors had bought the stock on margin and he now feared that they might not be able to pay off their accounts. Analysts were doubtful that Sunrise Technologies would survive unless it gets its laser treatment approved by the FDA. The company said in a statement Thursday that it would continue to seek government approval for its laser system. And not all investors are crying over Sunrise Technologies' setback. Analysts said that one of Sunrise Technologies' top competitors, Visx Inc., in Santa Clara, Calif., should pick up hundreds of new laser patients. The company's stock rose 5.4 percent, or $5.25, Friday to close at $101.34. The stock has returned 365 percent so far this year.

To: Sylvester who wrote (2839)	7/25/1999 12:08:00 AM
From: majormember	Respond to of 4140

>>>>says the company knew they were going to be substantially delayed by the FDA. >>>>This delay may have let the insiders sell their shares leaving the rest of us to get screwed. Sylvester, Needless to say, if either of the above allegations turned out to be true....people would be going to prison and making big restitutions to shareholders......seems far-fetched, but we should be on alert for insider sales prior to FDA. I would also add that if there is ANY proof of either allegation being true, the investor's on this thread should hire an investigator since this would be fraud, conspirancy at the highest levels in the co. Had not considered this angle but the way this went nothing would surprise me..........for the record, I give this no credance, unless I see proof showing otherwise. Skane P.S. I would like a post from someone who was at the meeting. I think a number of our people went....Greg, were you there?