Asensio/Hemispherx Soap Opera Part 2

Mary Schweitzer schweit2 at ix.netcom.com
Thu Oct 1 22:24:27 PDT 1998


Hemispherx is suing Asensio, SEC and AMEX involved, Asensio is fuming.

Sorry for this long introduction -- the point I am getting to is that PUBLIC KNOWLEDGE of this disease becomes a pingpong match between these two companies; and the possibility of this drug ever reaching any patients ALSO becomes a pingpong match between these two companies, and somehow I don't see the "invisible hand" resolving things.

This could also be subtitled the new R&D: venture capital meets the new world of electronic sales=high volatility.

Hemispherx was at 4 in April, 13 in August, plunged to 5 after Asensio report. Right now at 6.

Just want to give two more examples: Here is a sample Asensio bulletin, and a sample Hemispherx bulletin will follow -- and how do people reconcile these two? Clearly Business Week has never heard of research.

If you want to follow this, there are 6000 posts on the Yahoo bulletin board for Hemispherx!!!!!

Asensio is at http://www.asensio.com/ Hemispherx is at http://www.hemispherx.com/

Asensio, September 30:

Asensio & Company: Hemispherx Continues Fraudulent Stock Promotion

NEW YORK, Sept. 30 /PRNewswire/ -- The following is being issued by Asensio & Company, a member of the National Association of Securities Dealers, CRD number 31742:

Yesterday, Hemispherx Biopharma, Inc. (Amex: HEB - news, HEBWS - news) issued a statement claiming that a study from Harvard University School of Medicine led by Dr. Anthony Komaroff states ``that up to 2 million Americans suffer from Chronic Fatigue Syndrome.'' This statement is completely false and untrue. There is no Harvard study, no study led by Dr. Komaroff or any studies that have ever been published claiming that there are up to 2 million U.S. CFS cases. We believe that Hemispherx's statement is an attempt to lead investors to believe that Ampligen has the potential to become a valuable CFS drug. Nothing could be further from the truth. First, Hemispherx's Ampligen is not approved or recommended to treat CFS or any other illness. Second, there has never been a single, conclusive study published that shows any evidence that Ampligen is a safe and effective CFS treatment. Third, even according to the regional, faulty studies cited by Hemispherx, CFS has a very low incidence rate. Furthermore, the CFS incidence rate of patients who are sufficiently ill to require special treatment is even far smaller.

Hemispherx claims that Ampligen can be used to effectively treat CFS and that the CFS market is 20 times higher than our estimate. In fact, Hemispherx's estimate is based on a study that found only 3 patients out of 4,000 surveyed that met the old 1988 CDC CFS criteria. Even extrapolating the ratio of 3 CFS cases in a survey of 4,000 members of a single HMO or a single city, Seattle, to the entire U.S. yields only 150,000 CFS cases.

We know of no reason for Hemispherx's continuing promotion of CFS and Ampligen except to defraud investors. Hemispherx's stock price and trading volume has risen as a result of its fraudulent CFS promotion, which began with its fraudulent use of Oprah Winfrey's copyrighted materials. At the same time, Hemispherx's insiders have been exercising their low-priced warrants, which they mostly received for free, and selling their shares without disclosure. Hemispherx's insiders have been constant sellers since the IPO. These sellers include Dr. Carter who claimed during a conference call last week not to have sold any stock in ten years. This is an apparent reference to his fraudulent private stock sale to an AIDS patient.

CFS is a controversial condition with no known cause. No CFS diagnosis test exists. CFS is normally treated with psychological consulting, antidepressants and pain relief medicines. Hemispherx possesses no ability to profit from the CFS market except through its fraudulent stock promotion. This makes any debate concerning CFS's prevalence rate irrelevant to Hemispherx's stock value. However, an analysis of Hemispherx's statement is important to establish its willingness to disseminate completely false information for the purpose of defrauding investors. A complete report and analysis of Hemispherx's CFS prevalence statement is available at http://www.asensio.com.

We have also conducted a complete analysis of a lawsuit filed against Hemispherx by a holder of its Series E Convertible Preferred Stock. We believe that the complaint and its exhibits provide further details of Hemispherx's fraudulent stock promotion. A complete report and analysis of this lawsuit is also available at http://www.asensio.com.

This report should not be construed as an offer to sell or solicitation of an offer to buy any securities. Opinions expressed are subject to change without notice. This report has been prepared from original sources and data which we believe to be reliable but accuracy is not guaranteed. This research report was prepared by Asensio & Company, Inc. whose stockholders, officers and employees may from time to time acquire, hold or sell a position in the securities mentioned herein. Asensio & Company, Inc. may act as principal for its own account or may sell or buy to or from its customers the securities described herein. Asensio & Company, Inc., 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 report or its affiliates.

SOURCE: Asensio & Company, Inc.



More information about the lbo-talk mailing list