To: Graystone who wrote (6240 ) 9/18/1998 10:36:00 AM From: bmart Respond to of 26163
biz.yahoo.com Friday September 18, 9:27 am Eastern Time HEMISPHERX BIOPHARMA Reports Illegal Shorting Of Its Stock to Securities Regulators PHILADELPHIA, Sept. 18 /PRNewswire/ -- HEMISPHERX BIOPHARMA (Amex: HEB - news) reported today that it had uncovered illegal shorting in its stock which it has now reported to the various compliance divisions of American Stock Exchange, Nasdaq and SEC. According to the company, the illegal shorting was orchestrated in conjunction with a purposefully erroneous and misleading report appearing in the September 28, 1998 issue of Business Week which claimed that the company's lead drug for treatment of Chronic Fatigue Syndrome (CFS) was ''highly toxic and ineffective.'' The company stated that contrary to this assertion, their drug was receiving additional regulatory approvals for commercial sales on an ongoing basis and that, in all of its major current markets, patients in the United States, Canada, Belgium and Austria, were demonstrating no clinically significant side effects and, according to the independent clinicians at various Universities in the United States and Europe conducting the studies, substantial evidence of quantitative improvement was being regularly observed. William A. Carter, M.D., the company's Chairman, further noted that the Food and Drug Administration (''FDA'') in its official document to the Interagency Committee on Chronic Fatigue Syndrome as recently as May 1998, said committees consisting of the Social Security Administration, National Institutes of Health, Centers for Disease Control, and Health and Human Services, specifically mentioned only the company's drug as being made available at this time to severely ill patients. Furthermore, the FDA has recently authorized additional expansions of the treatment protocol and the confirmatory placebo controlled phase III test. Dr. Carter stated that the drug had been injected over 40,000 times without clinically significant side effects and that these results were readily available in more than 200 peer reviewed scientific papers and would be further confirmed by clinical data to be presented at international CFS scientific meetings in Boston, MA and Rome, Italy during October and November, 1998. The Company stated that it would actively work with the NASD's task force on illegal short selling, as well as other regulatory agencies, in order to prevent illegal and disruptive manipulation of its stock. The Company also indicated that it had officially contacted Business Week to inquire as to how factually incorrect information could he published by one of its staff in light of the readily available clinical data which outright rejects the allegations concerning the drug, which data was readily available from numerous public domain scientific sources. The Company stated that its stock had been selected for the illegal manipulations solely due to its outstanding quantitative performance over the last several months which was due to the company meeting a number of strategic business benchmarks with respect to its broad based antiviral treatment programs. Information contained in this news release other than historical information, should be considered forward-looking and is subject to various risk factors and uncertainties. For instance, the strategies and operations of HEMISPHERX involve risks of competition, changing market conditions, changes in laws and regulations affecting these industries and numerous other factors discussed in this release and in the Company's filings with the Securities and Exchange Commission. Accordingly, actual results may differ materially from those in any forward-looking statements. SOURCE: Hemispherx Biopharma, Inc.