Farmas USA

Me he ido a las 18:30, hay tiempo,,,

Una mier,,,,,,,

Si esto no es capitulación, que me echen, faltan tres días como estos anteriores. No me jodas!

Menuda sangria. Casi en todo mas de 30 y pico% de viaje en una p semana. Espero que la espera antipanico resulte mejor.

En no farmas las BBVA que comentaba Xenkov creo que son una buena opcion a medio.

MNKD a 1$ de nuevo ... Esta en 2019 se hace otro 2x o 3x ... Que apostais?

Vale,ahora hay que irse a mirar que ocurrio en 1932 jeje.

SGYP 

A los golpeados por la bancarrota de esta , les publico una carta que un inversor italiano le ha enviado a la SEC. Voy usar dos post para no recargar solo uno  y No pongo un link `porque lo publico en el grupo de Facebook de inversores de SGYP que agrupa unos 400 miembros que sumados son poseedores de 30 millones de acciones y han formado un comite que los va a representar en  el tribunal  Bancarrota- En 5 dias reunieron los fondos aportados entre todos para pagar la firma de abogados que los va a representar. Lo publico por que creo util conocer ciertos personajes que se mueven en ese mundillo que si un dia los vemos en la directiva de alguna empresa , ya sabremos por donde va y para que se vea que a veces por mucho AT o AF que hagamos cuando hay una mafia detras es muy dificil escapar , si bien el Short Interest super elevado con 27 Day to Covert , me hizo creer que habria Shor Squeeze pero los pocos institucionales y los Insider Vendiendo, no los fui capaz yo de asimilar, me deslumbro la parte cientifica y las expectactivas de mercado de Trulance al ser mejor que Linzess de IRWN que  hizo 700 M  en 2017 pero con apoyo de Allergan.

Los que demuestren que tiene acciones , se pueden incorporar al grupo de FB, es una saga  interesante para comprender mejor este mundo en que metemos nuestro dinero, que casi siempre nadie nos regalo y debemos cuidar

 

Dear victims of this billion$ fraud, just filed in to SEC another claim. In the end of this long summary I tried -on purpose- to strike a personal note so to speak...

This is the text  QUOTE

Dear SEC representative

I am an individual investor of Synergy Pharmaceuticals inc. (ticker: sgyp).

This communication shall be intended as integral to my previous SEC filing dated 2018-11-02 11:32:27

File #: HO::~00689417~::HO

I want to report a likely staged Bankruptcy. 

In my opinion, Synergy Pharmaceutical management is staging a Banckruptcy for their personal interests and their ultimate goal is to get rid of existing shareholders of the company.

I want to add, for your evaluation, other elements to my previous file upon the latest events regarding Synergy Pharmaceuticals company:

On Dec.12th, the Synergy filed for Chapter 11 with a stalking-horse bid for the sale of the assets of the company of $200 million.

The premise:

This company is already at a annual run rate of selling $135 million worth of drug according to last Bloomberg data. Upon its sell, under the control of big pharma and recent insurance wins (300% increase starting from January), the company’s main FDA drug Trulance is expected to sell about $300 million in year 2019 alone. 

Apart from Trulance, the company has another Intellectual Property (a drug formula called Dolcanatide which currently sponsored by NIH for colon cancer treatment) 

Company already sold some territorial right of their mains drug Trulance.

Upfront payments due will be respectively:

China - $52 million 

Canada - $ 12.5 million

On top of that, there will be the fees, not disclosed by SGYP for competitive reasons.

What is compelling is that, with the exception of the approval of Trulance, this company has never been on the verge of so many potentially very positive catalysts:

1) major insurance coverage (starting from January),

2) Competitor drug Linzess shall disclose the results of the  immunogenicity report (completed, whose deadline for disclosure end of February). Should any issue arisen, Trulance would have an immense competitive advantage.

3) a preliminary review of Dolcanatide, SGYP 2nd drug (by National Institute of Health, deadline end of April).

To be noted that Sinergy IP patents will start to expire by end 2032, so in a long time.

How come the whole ownership of above mentioned intellectual properties can worth only $200 million, as per Bausch Health offer, so much less that the market cap reached in the past upon FDA phase 2 approval for one prescription only?

Trulance’s peak sales are prudently estimated to be around $500-600 million per year 

Therefore, fair value of the company would be much higher than the stalking-horse bid.

Pls consider  recent Bankrupt Judge Garrity statement that defined "aggressive" the speed of bankrupcy, and creditors defining it as "extraordinary rushed". As investor I have the suspect, not to say certainty, that there are parties involved who want to complete the bankrupt process as quickly as possible, before it is possible to assess the above mentioned, leaving zero for shareholders. 

This company’s management is on a fraudulent mission and they can be only stopped by FBI and the SEC.

They recently filed for chapter 11 and will sell the assets of the company. 

Why are they only selling the assets? If they sell the whole company, a potential buyer will have a great tax advantage therefore it will increase the shareholders value with indirect reflection in to the bid of a potential buyer. 

Selling assets only but not the whole company under CH11, might mean that Synergy Pharmaceuticals Management want to keep the doors open for their benefit and personal interests. 

This can be done by buying partial rights to some drug or becoming a shell company in a reverse merger with some private entity. 

This will involve issuing new equity to the acquired entity and wipe out current Shareholders. This is potentially their ultimate criminal plan to steal investors.

As said before, selling assets only doesn't give the potential buyer a tax deferred revenue benefit which is in the case of synergy is over 100 mil $ over next 15 yrs. 

So why a potential buyers doesn't buy the whole company, but instead just the assets?

Perhaps it is because Synergy Pharmaceuticals want to want to keep their likely fraud running.?

 

Another suspicious fact of this story is represented by the 3Q18 revenues. In that quarter the presciptions were 63,085 generating only 11.1M net sales, while in the previous 2nd quarter 55,000 prescriptions generated 12.3M net sales, implying an operating margin drop from 52% (Q2) to 41% (Q3).

These numbers are anomalous, considering that normally the margin is supposed to increase with increased presciption volume and not the contrary.

Only a massive rebate in summertime would have justified this drop, but shall be proven. Pls, considering that investors have been deceived multiple times, and the company has been acting in a total lack of transparency, to check the consistency of Synergy Pharmaceuticals balance sheet is definitely worth of a SEC investigation.

This is a very simple company with one drug only on the market, so to verify if there is a fraud in the Q3 balance sheet, potentially could be not that difficult.

Another suspicious element of this story are the average 40M expenses declared per quarter, which seems absolutely exaggerated for a only 250-300M employee company, with almost no expenses in Research and Development (the Dolcanatide trial is financed by NIH, a public entity), and no expenses at all in marketing and advertising.

Moreover another disturbing fact relevant to SGYP is that in the past there have been people arrested for insider trading on this stock. Please refer to attached link.

https://seekingalpha.com/article/3237486-synergy-shares-climb-after-manipulation-arrests

The story seems to repeat itself right now.

Yet another disturbing fact lays in the astonishing track record of the companies Gary Jakob -former CEO and president of Synergy- was involved to.

All of them where left to the ground:

Callisto Pharmaceuticals (CLO),

Trovagene (TROV),

Contravir (CTRV)

and now Synergy (SGYP).

Pls check the relevant stock charts to assess.

He has made to gain a fortune to whoever shorted those stock (likely to himself too), and shorting a stock is gambling (or defrauding), definitely NOT investing.

Now this "Gentleman" moved as CEO of Immuron (IMRN) and the relevant announcent...

https://globenewswire.com/news-release/2018/11/19/1653758/0/en/Immuron-Appoints-Gary-S-Jacob-Ph-D-Experienced-US-Based-Biotechnology-Executive-as-CEO.html

QUOTE

...Jacob raised over $500 million USD of capital in the public markets...

UNQUOTE

added insult to injury.

That huge amount of money was STOLEN in the public market to investors like me, not raised.

SEC shall stop him to continue to steal money around the globe!

SEC shall stop him to continue to steal money around the globe!

Another suspicious aspect of this story is that the short interest skyrocketed up to over 80M open positions, soon after the CRG tricky loan was signed by the management. It is likely that CRG shorted the stock after the loan. This might be considered as hedging the loan itself, but it as to be noted that one CRG representative sits on synergy board. Therefore CRG shorting SGYP stock would consist in insider trading. Not to mention that the stock could have been shorted from the inside by the members of the synergy board. Suspicious is also the fact that the short interest never dropped despite the stock price was plummeting, so shorts all the time looked very comfortable and safe in their position, regardless to the share price, and regardless to the 2018 promising news.

In fact, the recent stock trend, after n.3 positive news in row this summer namely: earning release over the expectations, the China deal, and the Express script insurance coverage win, is quite suspicious too. The stock plummeted from over 2$ mid august to 1.3$ oct 24th with no negative news, including a suspicious flash drop from 1.7$ to 1.28$ in a matter of few minutes on oct.2nd. A massive amount of stocks damped from nearly the all time minimum. Definitely anomalous! And that was just before the Oct.25 PR, that intentionally broken the market cap loan covenance sinking the stock to 0.4$, and Dec.12 chapter 11 filing, that further sunk it to few cents.

The bankrupt should be the ultimate solution for any company.

In this case the Synergy bankrupt in only due to loan toxic terms signed by SGYP management. Pls assess thoroughly the following numbers relevant to SGYP drug Trulance market launch:

the 1st week of december (source Bloomberg) the following gross revenues accounts for 2.6M /w namely 135M /y.

There is a consolidated trend of an average prescriptions growth of 1.8% week over week going on since the lauch beginning.

Based on the above, to reach 4M/w by end of 2019 (over 200M yearly), would actually represent a SLOWDOWN of the current 2018 growth trend, trend that has been achieved with no marketing, a small salesfoerce, and a poor insurance coverage. As I said, 250 or even 300M more likely.

With a honest and committed management this company could rich the break-even by 3Q or 4Q 2019, consider that insurance coverage will triple beginning of Jan.2019.

Instead they pursued the bankrupt path.

Also a bigger (and transparent) company will take 70% margin, same as Ironwood, the company that commercializes the competitor drug Linzess, and not a modest (and suspicious) 41%.

Pls consider the fees that SGYP will start to collecte after the recent approval for Trulance commercialization in Canada.

A similar deal for the distribution in China will imply fees from that country too.

Further future deals could follow in Europe and Japan too.

In case of Synergy, the stock has been trading around $2 average value, all 2018 long until september. Therefore there could have been alternate possibility to raise cash, such as another diluition, or by issuing convertible bonds, just to name some.

Not to mention a co-promotion for the US market  with a similar company, a deal where two company share the salesforce, even temporarily. It should have been definitely not a big deal, and would have cut dramatically the costs, or further increased the revenues, or both. But nothing of this kind was done.

Instead, the CRG loan signed by SGYP management was full of covenances, whose terms were not disclosed in sept 2017 when it was sign the loan, and some impossible to meet.

In the Sept. 2017 Press Release Synergy CFO G. Gemignani triumphally announced to have "SECURED A 300M NON-DILUITIVE LOAN"

It was a TOTAL lie!

1) Two months later they instead made a diluition, causing a stock price drop from 3.1$ to 1.68$ in n.4 days.

2) And one year later they raised a bankrupt alert, having borrowed from CRG not the entire 300M, but just the first 100M tranche. One third!

It is true that the the shareholder capital is at risk, but it does not imply that we accept to be victims of a fraud. We accepted the risk to lose in case of the Trulance drug failed to get FDA approval, or if the launch was a disaster. But that was not the case of Synergy.

One last interesting point I want to remark is the following: like many investors, I used to interact on finance boards such as Seeking Alpha. On that board there was one person under they the nickname of John H Crawford that was predicting the SGYP bankrupt since the day one after the loan. Back when no one would have imagined, with the stock trading in the 3-4$ range. It would be really interesting to investigate and reveal his/her identity, because it really seems he/she was aware of the fraudolent scheme behind this fraud since the very beginning. Whoever is hiding behind that nickname knew much more info than what was available to the investors.

I am an Italian investor living in Florence, Italy.

Many tourists from US Country come to visit our cultural beauties or for studying art in college,  receiving always a warm welcome. I work for an american company too.

I always looked to your country as an example of freedom and successful entrepreneurship. But I admit this fraudolent story changed my outlook altogether.

Once more pls remember: the Statutory Mission of the U.S. Securities and Exchange Commission is QUOTE to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation UNQUOTE

I deem  is your duty to thoroughly investigate such suspicious sequence of events and "coincidences" that has brought all of a sudden Synergy Pharmaceuticals to declare bankrupt just before the turning point that would have started to create real value for investors.

Thanks.

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Se esta intentando que se publique un resumen de esta en el Wall Street Journal