Corbus Pharmaceuticals (
Says who? My most reliable and skeptical healthcare investor source says so. I can't share this fund manager's identity with you, but you've read his accurate biotech bear calls before in my columns. Most recently, he was short Mast Therapeutics, CytRx, Immunomedics, NewLink Genetics, Chiasma and Celldex Therapeutics before they all blew up.
Now, he's short Corbus. Resunab, the only drug in Corbus' research pipeline, doesn't work, he says. The drug is a zero, but you wouldn't know that based on bullish analyst reports and a stock price that has gone from $1.50 per share in January to almost $10 per share earlier this month. Corbus shares closed Monday at $8.90, giving the company a market value of $390 million.
The market is acting like resunab is a real drug, which is why my investor source is short Corbus. He says he knows better. The verdict comes later this quarter when Corbus announces top-line results from a mid-stage clinical trial of resunab.
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I'm turning over the remainder of this column to my investor source. In his own words, he'll explain the bear thesis on Corbus and why he predicts the upcoming resunab clinical trials results will be a failure. Again, he's short Corbus.
Corbus Pharmaceuticals' lead drug is resunab. It's derived from marijuana, though synthesized chemically, designed to hit the CB2...