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

To: Biomaven who wrote (14960)	12/27/2004 9:22:50 AM
From: Biomaven	Respond to of 52153

In the "FWIW" category - by the time companies start suing short sellers and stock manipulators it generally means they have given up trying to make a go of their underlying business. I've always been extremely dubious about this company: Press Release Source: Hemispherx Biopharma, Inc. Hemispherx Biopharma Files Lawsuit in Federal Court Alleging Conspiracy by Foreign Nationals to Manipulate Its Stock Price and Engage in Illegal Hostile Takeover Monday December 27, 8:56 am ET Members of Conspiracy Group Already under Criminal Investigation for Stock Fraud Outside United States PHILADELPHIA--(BUSINESS WIRE)--Dec. 27, 2004-- Hemispherx Biopharma, Inc. (AMEX:HEB - News) announced today that it had filed a lawsuit in federal court (Southern District of Florida) identifying a conspiratorial group seeking to illegally manipulate its stock for purposes of bringing about a hostile takeover of its company. The lawsuit further alleges that, as part of a scheme for unjust enrichment, and following a change of control, the hostile takeover group planned to massively engorge themselves with additional Hemispherx shares by "merging" with worthless, privately held laboratory companies in which they are currently primary shareholders. ADVERTISEMENT click here Over a several year period, the conspiratorial group had experienced progressive financial difficulties including loss of liquidity, failed capital raises, failed efforts to launch their companies into the public stock markets, coupled with failure to develop commercially successful pharmaceutical products. The lawsuit alleges that the defendants, considering liquidation and complete loss of value in their illiquid investment, presented to Hemispherx, in person and in writing, merger proposals. Hemispherx's Board of Directors determined the proposed mergers as not being in the best interest of shareholders. As a consequence, the lawsuit alleges that they commenced an illegal plan to seize control of Hemispherx's cash and proprietary assets by an illegal campaign to drive down the stock price and publish disparaging "reports" on the management and current fiduciaries of Hemispherx. The lawsuit seeks monetary damages from each of the members of the conspiratorial group as well as injunctions preventing further recurrences of their misconduct. The conspiratorial group is identified as South African high net-worth individuals, a privately held South African Biopharmaceutical company that was a former collaborator of Hemispherx, and certain Europeans. Hemispherx had previously made a strategic investment in the South African biopharmaceutical company involved in the current scheme but subsequently determined the investment valueless and wrote it off. A company spokesperson said that the curtailment of the stock fraud efforts would create an opportunity in 2005 for the Hemispherx stock performance to respond appropriately to anticipated corporate developments, specifically with respect to its Phase III experimental product for CFS, Ampligen® (the first product to report a Phase III pivotal trial which successfully reached its primary efficacy end point), and the various market development programs for its fully commercial product for HPV, Alferon-N, now being tested against various other devastating viruses, including WNV, HCV, SARS, bird flu and others. About Hemispherx Hemispherx Biopharma, based in Philadelphia, is a biopharmaceutical company engaged in the manufacture and clinical development of new drug entities. Its flagship products include Alferon N® and the experimental antivirals products, Ampligen® and Oragens(TM). These novel Alferon-N proteins, commercially available for a category of STD infection, and experimental nucleic acids are being developed for globally important chronic diseases and disorders of the immune system including HPV, HIV, CFS and Hepatitis. Its four major technology platforms include large-and small-agent components for potential treatment of various chronic viral infections, and are being developed with various corporate, governmental and academic collaborators worldwide. Hemispherx has approximately 300 patents comprising its core intellectual property estate, a fully commercialized product (Alferon N®) and GMP certified manufacturing facilities for its novel pharma products. For more information please visit www.hemispherx.net