IsoRay, Inc. (NYSEMKT: ISR)
IsoRay stock had an incredible day in the market after data was released regarding Cesium-131 on Wednesday. Unfortunately however, yesterday was a bit of a different story. Yesterday, the stock plummeted following a peer review of the data by Adam Feuerstein; and while I understand that tons of investors follow him, I think that they’re missing a very big piece of the puzzle here.
Adam Feuerstein’s Big Gripe With IsoRay
In his research note, Mr. Feuerstein argued that the data released about Cesium-131 shows that there’s absolutely no upside to the medications. He explains that survival rates after 5 years at 100% are menial considering the industry average is 98%; and he explains that local control at 96% is in line with the current standard of care; it doesn’t surpass it. So, he essentially states that the title of the recent press release was a misleading attempt to inflate the stock price. However, what seems to be left out of the equation here is the difference between Cesium-131 and current standard of care. I wrote about this earlier today on CNA Finance, and I think a comment I received on the post from David sums things up entirely…
“The point AF seems to be either missing or intentionally ignoring is that CS-131 is a one-time treatment coupled with surgery, compared to months of chemo plus surgery. “Few investors are reading the actual study involving Cesium-131 published in the medical journal Brachytherapy. If they read the study-and I did..” Doesn’t it seem that someone who made such a statement would include a link to the study, or at least some direct quotes? But Adam can’t have other people reading it, they would see his BS for what it is. The study absolutely DOES endorse CS-131. Adam’s only complaint is that the press release does not say that other therapies are about equally effective – and why would it? When a car commercial says “30 MPG” it does not also say “And this other car gets 29, and this other car gets 31.” It’s more like ISR said, “We have a one-time therapy that may be equally effective as months of traditional chemo” a while back, and now this release says “It is indeed equally effective”. Nothing misleading AT ALL.”
First off, thank you David for your comment. Also, following your comment, I decided to read the report myself; and you’re absolutely correct, it does endorse Cesium-131.
What I Expect Based On My Research
Based on what I’ve seen from ISR, reading the medical journal report, the press release, and Adam Feuerstein’s comments, I have to say that I think the value of the stock is going to climb. I understand that Adam Feuerstein is somewhat of a celebrity; so, when he talks, people will listen. However, over time, I think that investors will be smart enough to do their own research; and Mr. Feuerstein’s comments will prove to be nothing more than smoke! With that said, we may see a rough patch, thanks to the neglectful reporting of Feuerstein in the short term; but I’m still expecting to see massive gains in the long run.
What Do You Think?
Where do you think ISR is headed and why? Let us know in the comments below!
