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Biotech / Medical : Biotech vs. Shorts -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (319)	1/14/2000 6:22:00 PM
From: Biomaven	Respond to of 427

Well today was another over $900 million down day for the biotech shorts (to the extent they aren't hedged, of course). At some point they are going to throw up their hands and retire from the struggle. That'll probably mark the top. <g> Peter

To: Biomaven who wrote (319)	1/15/2000 12:43:00 AM
From: Neuroguy	Respond to of 427

Peter - shorts on CLPA have shorted each of the recent spikes on good news until recently, increasing their position from about 1.5M last summer to 5.2M at last count. In addition to their shorting simply because they may have qualms with the drug (which I lack), there was another possible reason. 'Rumor' had it that one of the big shorts was hoping to get in on the last private placement (they had been in on one in May, 1998). So they shorted to move the price down in the hope they'd get more shares for the same cash. They (Susquehana) had started a market in CLPA the morning it crashed last year, and had a lot of ground to make up. Now they are deeply in the red, and basically have only a limited number of trading days to ease out of the position or gamble on disapproval. The latter is unlikely since the FDA have dispensed with an ODAC meeting. CLPA have basically been hoarding good news until after FDA approval. It could get ugly for the shorts.. NBIX - one of my other favorites and largest biotech holdings. A question - if the NBIX antidepressant is as successful as it promises to be, what happens to SEPR's 'Son of Prozac', not to mention Zoloft? Psychiatrists I have spoken with who are familiar with the CRF antagonist story reply "it stays in the drawer"! SEPR could feel some real fallout if NBIX is successful there. Yes, no? I was also surprised by the SNRS movement after approval. Curious. The shorts may cover there very gradually in the hope it may fall back a bit. NeuroDude