Fisking Ray Dirks on Medgenics and Shaming Seeking Alpha
BOSTON ( TheStreet) -- Ray Dirks posted a screed against Idenix Pharmaceuticals (IDIX) and other hepatitis C drug companies on Seeking Alpha Monday night riddled with factual errors and misstatements. Idenix and other stocks were the foil Dirks used to promote Medgenics (MDGN) and its interferon "biopumps." Instead, he embarrassed himself with his fundamental ignorance about hepatitis C.
As for Seeking Alpha , one has to ask if the web site has any competent editing and fact-checking capabilities at all.
A proper fisking of Dirks' column follows:
Dirks writes: Unstoppable Medgenics has gotten closer to crushing the competition for a better hepatitis C drug and moving to the front of a $16.5 billion market. Just as the first patient is being treated with INFRADURE, Idenix Pharmaceuticals -- trying valiantly to seek a cure for the insidious virus -- finally admitted its failure in coming up with a better drug.
Medgenics unstoppable? Other than a brief spike to $15 per share last summer, Medgenics has been unable to escape the $4-5 per share trading range since its U.S. public equity debut in April 2011 -- an offering done only with the healthy dose of warrant sweeteners, by the way. Medgenics has a tiny 11% institutional ownership.
Dirks: Imagine you're a doctor. You have a patient in pain with a disease that has no cure and who looks to you for help avoiding a future that could only be brightened by a liver transplant. Now imagine the single drug you can prescribe has well-documented side effects so heinous that 50% of patients stop taking it. If you find yourself in this position, then you have a patient with hepatitis C.
Hepatitis C is a serious, life-threatening disease. It's also curable. Vertex Pharmaceutical's (VRTX) Incivek combined with long-acting (pegylated) interferon and ribavirin cures 70-80% of patients with the most common form of hepatitis C. Merck's (MRK) Victrelis is similarly effective in curing hepatitis C in combination therapy.
Dirks: Much has been written on PEG-interferon alpha, the once-touted wonder drug for hepatitis C that later drew side effects ranging from lupus and diabetes to suicide. After more than 20 years with nothing new, scientists finally came up with a potential blockbuster -- the NS5B inhibitors that could stop the virus in its DNA tracks and dramatically change the scarred landscape of hepatitis treatments. One problem: They tend to kill people.
Whoa. NS5B inhibitors -- more commonly known as nucleotide/nucleoside polymerase inhibitors or "nucs" -- are an emerging and potent class of oral, direct-acting antivirals against hepatitis C but only one of these drugs has been linked to a patient death
Dirks: Last August, global giant Bristol-Myers Squibb (BMY) was forced by the FDA to stop all clinical trials of its NS5B after the death of a patient. And as a testament to the herd mentality of Big Pharma's cutthroat greed that competes to be the first, other firms joined the NS5B contest to replace interferon while analysts gushed over a potential $20 billion market for the new drugs.