They want people to sell their stock in Provenge. They ( or the hedge funds they work for ) have a short position in the stock. A lot of rich people on Wallstreet are under water financially right now. Even the t.v. personality Cramer said he personally knows a lot of people who have lost their whole year ( financially) for shorting Dendreon.
Aschoff even went so far to issue this statement. . .
"Brean Murray Carret & Co. analyst Jonathan Aschoff said the FDA would set a "dangerous double standard" by approving Provenge, which did not meet its primary goal in two phase III trials.
I don't know about what others think - but to me that sounds as if he is basically saying .... How dare you to the FDA and the panel of doctor and scientists who gave the thumbs up . . . and that is pretty funny coming from a man who has impersonated a doctor.
I begin to ask myself - why? Apart from the financial reasons why are they so upset about a drug that extends the life of prostate cancer patients? What is so terrible about the advancement of science?
Brean Murray is after all a market maker for DNDN.
Dr Howard Scher has been singing the same tune as Brean Murray. Aschoff often refers to Scher's opinion as a basis for his negative opinion.
Here's some quick background information...
Dr Howard Scher voted was one of the minority on the FDA panel who voted NO against Provenge.
Scher has dedicated his career and his life's work on treating cancer patients with chemotherapy. One could deduct given his own media campaign against Provenge that he's not too happy about this new science that teaches the human body to to defend itself from cancer.
Dr Scher’s from the ‘old school’ thought for treating cancer. In other words chemotherapy. So all this new fancy “biotechnology” and training the body to cure itself ain’t exactly Dr. Scher’s cup of tea.
However he had every right to vote no . He just not too keen on the whole newfangled Provenge thing - that’s ok. It is good to have balance at AC FDA meetings.
He did have to sign a conflict of interest waiver in order to vote at the meeting. No big deal - It's just that Scher’s instituion has a grant from a competing firm that is studying an investigational drug in several types of cancer. It might just be Taxotere® which treats late stage prostate cancer via the ‘old school’ chemotherapy method - Scher's instituion recieves grants from the company that is studying Taxotore. Click here to read the FDA waiver.
Scher has even published what I view as his own "how dare you FDA" out in the media. The letter is an oddity in itself. So odd that in fact many thought it was a hoax! He contradicts himself over and over again ,and even changes his mind about the safety of Provenge - after voting at the AC panel meeting that it was safe. Before this letter was published there were rumors on Wallstreet about the letter. All in all .....rather odd behavior for a doctor of his stature.
Speaking of oddities.
According to the New York Times Dr. Howar Scher's wife used to work for a hedge fund called Warburg Pincus.
Mrs. Scher, a graduate of Haverford College who has an M.B.A. from Columbia University, is an associate in the venture-banking division of E. M. Warburg, Pincus & Company in New York.
After reading that his wife used to work for such a huge hedge fund that also runs UBS ( they are short on Dendreon as well) I started some cybersluething see if there was some connection between Brean Murray and Dr. Scher.
While I did not find a direct connection I found some things that made me say .... huh?
Mrs. Scher's employer ( or former employer) has a business relationship( or did in the past) with Brean Murray!
According to this S.E.C. document they are both listed as partners with Eclypsis Healthcare Company
">http://72.14.209.104/search?q=cache:7UM515ahlNwJ:www.secinfo.com/dsvRq.61g.8.htm+Brean+Murray+%2B+Warburg+Pincus&hl=en&ct=clnk&cd=2>;
I also found it odd that Dr. Scher's hospital is a long time Eclypsis customer. . .
A long-time Eclipsys customer, Memorial Sloan-Kettering has successfully used Sunrise Clinical Manager in the ambulatory environment . . .
Who is Jay Petschek? He's the fellow in the picture with the blue tie. I am not sure if he is still employed by Murray but according to this SEC document he was at one time.UPDATE ACCORDING TO A 2007 SEC DOCUMENT PETSCHEK IS THE VICE PRESIDET OF BREAN MURRAY.
Brean Murray's Petschek is a director of Boyar Value Funds , the fund holds shares in a company called Automated Data Processing , Inc. According to the New York Times Dr. Howard Scher's father in law is or was the Vice President of Automated Data Processing
Petschek also is director of a company called Dab-O-Matic. They make the containers for Drysol. The product called Dab-O- Matic Drysol™ is a topical treatment for hyperhidrosis. Hyperhidrosis is a side effect of patients undergoing systmatic chemotherapy. Sistematic chemotherapy therapy treatment causes the human body to sweat profusely . Scher's Taxatore is a drug employs sistematic chemotherapy.
Petschek is also director of Global Opportunity Partners Ltd( the guy gets around) . Global is listed here on this PDF file. Also listed on the PDF file is a Lafer Equities . Lafer Equities is a hedge fund. They are both located off shore in the Cayman Islands. According to Barrons Lafer Equities both shorts and holds stocks long.
Petchek from Brean Murray also has Corsair and the following companiesThe names of the persons filing this statement on Schedule 13G are: Corsair
Capital Partners, L.P. ("Corsair Capital"), Corsair Long Short International,
Ltd. ("Corsair International"), Corsair Select, L.P. ("Corsair Select"), Corsair
Capital Partners 100, L.P. ("Corsair 100"), Corsair Capital Investors, Ltd.
("Corsair Investors"), Corsair Capital Management, L.L.C. ("Corsair
Management"), Jay R. Petschek ("Mr. Petschek") and Steven Major ("Mr. Major" and
collectively, the "Reporting Persons").
I can not say I am 100 percent sure that Lafer Equities belongs to Dr. Howard Shers wife ...but according to this web page people who have worked at Warbug Pincus ( Mrs. Howard Sher's former employer ) were later hired by Lafer Equities.
Lafer Equities and offshore hedge fund is run by a Barry S. Lafer.According to this website Scher's mother and law and Barry S. Lafer make political donations from Wayne New Jersey.
http://www.newsmeat.com/fec/bystate_detail.php?st=NJ&last=lafer
http://www.newsmeat.com/fec/bystate_detail.php?st=NJ&last=lafer&first=barryJersey.
Lafer Equities, according to recent SEC filings , is heavily invested in many companies that have to do with cancer and chemotherapy treatment.
http://www.secinfo.com/d12kd8.ue.htm
Cancer insurance company, even a company that manufactures medicine to help with the side effects of chemotherapy treatments.
I am not making any conclusions here .... and it might amount to nothing....some people would say I am being a conspiracy theorist - but I think it important to look at all angles of a story.
However , that being said ,I do find myself asking. . .
Wouldn't it be sad if money , power , and greed were one of the reasons that people on Wall Street don't like Provenge? I think that would be very sad. What so terrible about the advancement of a science that does not use harmful toxic chemotherapy drugs? After all it comes down to saving human life. There is nothing more important than that.
