Value Management & Research Reiterates Strong Buy Recommendation for Hemispherx / Short Seller's (Asensio's) Negative Publicity Is "Misleading and Much Ado About Nothing" Frankfurt, Germany (ots-PRNewswire) - The following is being issued today by Value Management & Research AG, a fund management, investment banking, research organization listed on the Frankfurt Stock Exchange with a current market capitalization of approximately $170 million. VMR has offices in Frankfurt, London, Geneva, Luxembourg and Madrid: The only issue here is whether Hemispherx will succeed as a pharmaceutical company. Scientific, operational and financial progress will determine the share's price development. Mudslinging from biased short sellers, based on irrelevant, "ancient" and peripheral issues, adds a purely emotional component and distracts from an objective fundamental assessment. Since short sell raids on Hemispherx are frequent, one-sided and almost always predictable, we have recently reviewed the major negative claims relating to Hemispherx in an in-depth research report. We invite investors to review these claims and to form their own opinion. Based on our fundamental assessment, we continue to rate Hemispherx as a Strong Buy. We believe the stock should reach new highs this year and reiterate our medium term $50/share price target. We are indeed reviewing potential benefits which Ampligen may have for the treatment of HIV sufferers worldwide and are reviewing this hypothesis with top scientists. One short seller's mudslinging campaign may not only mislead a number of investors by omitting and/or misrepresenting important facts, but may also delay the availability of potentially important medicines to hundreds of thousands of chronic CFS and terminally ill AIDS sufferers in the United States and abroad. To obtain our most recent Hemispherx report relating to one short seller's negative claims please proceed as follows: Type HEB US Equity then hit Enter Type CN, then hit Enter. Then choose the number of the story requested. Our research report was made available on Bloomberg on April 27th, 1999. When you see this news item on your screen hit the number of the news report. Then hit 1 Go. The report will be downloaded and can then be read or printed. You may also contact us by fax: Value Management and Research AG M.Kind, Director, fax from the US: 011-49-6196-8800199, from inside Europe 00-49-61968800199 or by telephone 49-6196-88000. or by e-mail mkind@vmr.de. We will make sure you receive our reports. Regarding the short seller's attempt to discredit our research efforts and Hemispherx by referring to completely unrelated and irrelevant issues, please review the following response: The short-seller quotes an October, 1998 FDA letter which asks Hemispherx to "discontinue the dissemination of materials that make claims of safety or efficacy for Ampligen." This quote is out of context and misleading. The FDA letter only states the obvious which is that a company cannot claim safety or efficacy to the public before final FDA approval has been given. This letter in no way reflects Ampligen's true safety or efficacy or lack thereof. What can be done, however, is to quote scientific, clinical results published in peer review studies such as the following: "PolyI:polyCl2U (Ampligen) therapy of HIV-positive subjects restored or stabilized immune function as indexed by delayed-type hyper-sensitivity reactivity and, in individuals with CD4+ counts > 300/mm(3), abrogated CD4+ loss and reduced disease progression. Ampligen was generally well-tolerated... No subject discontinued therapy due to an adverse reaction or aberrant laboratory parameter." Eur.J.Clinical Microbiological Infectious Diseases, 1996, 15:580-587, K.A. Thompson et al. Underlying studies performed at various independent and distinguished US medical institutions such as Baylor College of Medicine (Houston, Texas) and the University of Miami (Florida). "Ampligen and AZT were synergistic in inhibiting all isolates of HIV tested, regardless of their AZT phenotype. Furthermore, the combination of Ampligen and AZT showed no toxicity in vitro to bone marrow CFU-GM compared to AZT alone. In 11 HIV infected individuals receiving the combinational regimen, bone marrow gradually improved. These results indicate that Ampligen was active against AZT- resistant HIV, synergistic with AZT, and did not convey added toxicity." in vivo, 1994, 8:375-382, David Gillespie et al. At Hahnemann University in Philadelphia, Pennsylvania. These two studies were conducted at the highest level of clinical design and the results were audited to confirm accuracy of the clinical and laboratory results. Relating to other peripheral and irrelevant issues raised in the short-seller's note, Value Management & Research indeed recommended Dynamic Associates at $1.375 on November 27th, 1997 as an "outstanding buying opportunity." While the shares of DYAS are now trading at $0.11 per share, all shareholders that have held their stock since our recommendation have also received one share in MW Medical. These shares are presently trading at $1.48. On May 5th MW Medical shares reached a high price of $2.00 on May 4th on 349,000 shares. Adding the current share price of DYAS of $0.11 to the current share price of MW Medical produces to total value for shareholders of $1.59. Given our recommended price of $1.375, this produces a gain of 15.6%, and not a loss of 92% as indicated by Asensio. The short seller has conveniently "forgotten" to include the MW Medical spinoff to Dynamic shareholders in his calculations thus leading to a substantially erroneous conclusion. Other Miscellaneous Issues: Regarding to Turbodyne, VMR issued a formal sell recommendation, on September 9th, 1998. The shares were trading at $4.875 at the time. Since then, the shares have declined by 63% to $1.80. VMR AG has no business dealings with Harry Moll. Mr. Homm's options in Dynamic associates and VMR's holdings in Hemispherx are a matter of public record. VMR's legal disclaimer clearly addresses potential conflicts of interest. VMR has registered 750,000 shares of Hemispherx stock which it acquired in a private placement as a long term investment. Despite these shares being freely tradeable, VMR has not sold a single share. Regarding the E.I. Du Pont de Nemours & Co. termination of its partnership with Hemispherx, it should be noted that subsequent lawsuits were settled in favor of Hemispherx. As result DuPont paid Hemispherx the equivalent of $8 million in compensation. It should also be noted that at least three other investment firms are rating Hemispherx as a "Buy." This document is for informative purposes only. Under no circumstances is it to be used or considered as an offer to sell, or a solicitation of any offer to buy, any security. While the information contained herein has been obtained from sources believed to be reliable, we do not represent that it is accurate or complete and it should not be relied upon as such. We may from time to time have long or short positions in and buy and sell securities referred to herein. This firm may from time to time perform investment banking or other services for, or solicit investment banking or other business from, any company mentioned in this document. ots Original Text Service: Value Management and Research AG Internet: http://www.newsaktuell.de Contact: Patricia Koehler of Value Management and Research +49-6196-88000, or fax, +49-6196-8800-199, or pkoehler@vmr.de e-mail: NA_global@newsaktuell.de

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