E CytoDyn’s Data: Approvable Drug Sets Stage For Near-Term Move Upward

 The anecdotal data from over 60 Emergency IND’s was a real blessing in telling the story of whether or not leronlimab would be a good candidate for COVID-19.In their first 2 critical emergency IND’s their patients came off the ventilator in dramatic fashion that some might even call a miracle. These were critically ill patients with only hours left to live and were brought back from the brink. Dr. Lalezari commented in a KRON4 interview

“From our experience no one is too ill to benefit from Leronlimab,” Dr. Jay Lalezari said. “We have had the sickest of the sick, at deaths door, turnaround.”

In Dr. Patersons first interview with Dr. Yo he was recapping a heartfelt story about how he helped save a patient's life with leronlimab. Paterson said that “Anecdotes don’t come off of life support.”This quote has gained so much traction on social media it was actually turned into a T-shirt and raising money toward breast cancer research

Needless to say, the anecdotal data from over 60 Emergency IND’s was a real blessing.


Final Piece of Puzzle – Funding

For a period of time at the market financing was the primary method of financing CytoDyn’s progress going forward. During this period of consolidation the stock was flat but a huge number of warrants was accumulating and peaked at 175 million. Once excitement started brewing in the field of cancer the stock started its upward trajectory to the strike prices of the warrant. After news that leronlimab might be effective against COVID-19 that stock started to appreciate and some of the warrants started being exercised. The warrants are actually serving as a non-dilutive form of financing for the company. This year the warrants brought in $48 million in financing. As of last count 78 million warrants remain.  

Early in the pandemic CytoDyn hinted that BARDA funding was a possibility, but since then there has been no follow through. In Mid June the New York Times broke the news that BARDA was no longer looking for treatments of the disease and was myopically focused on vaccines. There was a disproportionate amount of funding whereby vaccines were raking in an estimated $2.2 billion compared to $359 million for treatments. This dearth of funding from the government is what forced the hand of the CEO to use is personal stock as a means to temporarily fund the manufacturing. A time-critical payment to Samsung biologics ensured that 1.1 million vials would be manufactured this year should the drug be approved. If the drug does get FDA approval the CEO assured investors that funding will definitely be on the table.  

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Disclosure: I currently hold shares of CYDY.

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Moon Kil Woong 4 months ago Author's comment

The US needs to start discussions with CYDY if they want to guarantee any of their production upon approval as other countries look to get approval before them. They have taken their sweet time going through the process which helps verify its effectiveness. However, many feel that the cost is people are in ICUs that don't need to be.

Tom Callahan 4 months ago Member's comment

Good article.

Moon Kil Woong 4 months ago Author's comment
Trinity Sinclair 4 months ago Member's comment

When will your next article on $CYDY be out?

Moon Kil Woong 3 months ago Author's comment

Hi I posted a Cytodyn article on Friday about the meeting if you want to check it out.

Moon Kil Woong 4 months ago Author's comment

I like everyone else is waiting for concrete verification of their drug by the FDA since there is so much questionable stuff being said from everyone. Of course, approval from other countries are welcome as well. Anyways, I don't see any compelling evidence against CYDY and what positive news comes out recently has been dashed. We're also still waiting for up-listing from this exchange which should help with the shorts who have been active.

Anyways, my suggestion especially for companies needing FDA approval is don't over extend yourself, be patient, and wait for the findings. Hopefully, we will be rewarded soon.

Moon Kil Woong 5 months ago Author's comment

I didn't expect the stock to move down before so hard before the company released approval, an exchange change, or something else. I do give them credit. They released positive data that would usually moves most biotech stocks. I guess the wait continues.

Ketan Desai 4 months ago Contributor's comment

Your reply makes no sense. You give them credit - for what? They missed the primary endpoint, so why are you trying to spin it as "they released positive data"? The stock has gone down because the street can see through the lies and charades the company peddles. As authors, we should not peddle such untruths here.

Currency Trader 3 months ago Member's comment

Perhaps I should have listened to you and stuck to forex which I know. $CYDY is down quite a bit since I first read this.

Moon Kil Woong 4 months ago Author's comment

Do you even understand phase II trials? The trials passed and their goal of showing safety passed with flying colors. Likewise they also passed to go on to phase III and came near passing phase III goals but its a phase II trial so the sample size isn't large enough to prove this result. This is why they are pretty confident of their phase III trial and they proved a phase III result although it was not primary. This was the same for Remdesivir. They are doing phase III trials right now. That is what we are all waiting for.

Ketan Desai 4 months ago Contributor's comment

I have been in the Pharma industry for 22 years. Am the CEO and Chief Medical Officer of a couple of companies. I know clinical trials much better than you. You should have checked my profile before making that stupid statement. Looks like you just don't understand clinical studies. THEY MISSED THE PRIMARY ENDPOINT. Any study can go to phase III if they don't have safety issues. But phase II endpoints usually reflect what will happen in phase III. AND YOU ARE BEING DECEITFUL. The Phase II study they reported was in mild/moderate. They are doing Phase II/III in severe patients. DONT MIX STUDIES. Hopefully no one listened to you or they would have lost money.

Terrence Howard 4 months ago Member's comment

The author may be focusing on the positive aspects, but I don't think he was being deceitful.

Ketan Desai 4 months ago Contributor's comment

In my view, presenting only one, positive, aspect of a company, or cherry picking data, while ignoring the negatives, is tantamount to being deceitful. A balanced article should present both the negatives and the positives.

Terrence Howard 4 months ago Member's comment

Ketan Desai, I think it's rare for authors to cover a stock with a completely unbiased view. Most write about a company because they feel strongly one way or the other.

Personally, I feel it's the reader's obligation to do some due diligence and seek out differing opinions and then make an informed decision on whether to invest. That's one of the reasons I love this site - I can read what different intelligent contributors have to say about the same stock. Unfortunately, there isn't much coverage on $CYDY. I think it would be great if you wrote an article about this stock as well so we could see some differing opinions. If you add up all your comments, the article is practically already written!

Moon Kil Woong 4 months ago Author's comment

I'm sorry to have upset you, however, please review the results between the only other drug to make it this far Remdesivir. Likewise, as you yourself mention yourself phase II endpoints. They did meet a phase II endpoint and no the FDA would not usually let a drug go to phase III without meeting one. It does not necessarily need to be the primary endpoint as I stated Gilead also knew this and got approved with Remdesivir.

If you have a bone to pick, pick it with the FDA or with CytoDYN or Gilead since you apparently don't even accept their findings. I am stating the facts as presented. And yes, you are correct that phase II does reflect what will happen in phase III. However, phase III is trying to get approval for mild and moderate cases as well as critical cases. Phase II dealt with critical cases. You may be applying a standard for trials for a different class or set of FDA trials as you are here.

In the case of remdesivir it was classified as an antiviral the drug and was approved for limited use even though it didn’t reduce the viral load and had limited efficacy even in phase III. Understandably, Covid drug approval is confusing. Perhaps this is because there is a crisis going on and there still needs to be approve-able drugs for Covid. Anyways, facts are facts. Once again, I implore you to read the Trial particulars and findings in both these cases.

I respect you and your qualifications, but please, you are confusing people regarding FDA Covid trials and approvals in this case.

Ketan Desai 4 months ago Contributor's comment

Sigh! You just don't get it. THEY MISSED THE PRIMARY ENDPOINT. Secondary endpoints don't get you approval. Your ignorance of clinical trials is profound. Once again, you can miss all endpoints and still go to phase III so long as there is no safety signal. And don't bring Gilead into this. Wag the dog and distract the issues. AND YOU ARE WRONG - PHASE III IN CRITICAL WILL NOT GET APPROVAL FOR MILD/MODERATE. THAT IS A LIE.

Hopefully no one listens to you or they would have lost money.

Moon Kil Woong 4 months ago Author's comment

What you are missing is that they are going for Emergency Use Authorization and then will file for approval. Gilead did that with remdesvir recently. Now the case you make for a critical approval will not result in a mild to moderate approval is naïve. Calling it a lie doesn’t take away from the fact that the FDA will want to control off label use because the safety profile is so good. An approval in either indication could result in an emergency use authorization.

Likewise, calling me ignorant will accomplish nothing. Missing the primary endpoint in a phase II investigational trial is not a big deal. The trial is labeled investigational because they are investigating what will or won’t work. This wasn’t a PIVOTAL phase 2b/3 trial. Missing the primary endpoint in a pivotal trial is a big deal. That is not the case here.

If you want to claim these facts wrong get proof from the FDA as to your claims. I'd be very interested because in a way you are claiming the FDA is also involved in misleading the public by moving phase III trials forward they shouldn't because they know they will fail. This they do not do although, there is no guarantee either that it will succeed or fail in phase III. If you know it will fail it's your money, do what you think you know for a fact. I won't stop you. I see no reason to continue this conversational line.

Ketan Desai 4 months ago Contributor's comment

Let's see if they get emergency use authorization. If they don't let's see if you have the humility to publicly acknowledge that. i will if they do. And you buttress my point that MM and Severe patient trials are different and cannot replace each other. So you ended up supporting exactly what I've been saying.

Susan Miller 4 months ago Member's comment

Petty bickering aside, what's the likelihood of getting the emergency use authorization? What factors come into play?

Ketan Desai 4 months ago Contributor's comment

Very slim. One has to do ones own due diligence. Saying that since someone lent them 20 million, it must be good is very foolish. And the company CEO is a felon who was convicted of wife beating as well as selling fake Indian artifacts. And they release data (or not release data, to be precise, very selectively). So, yes, they are liars.

Since the trial missed its primary endpoint in phase II, the FDA will ask them to conduct at least one phase III study (with 90%) power. Which means more patients, longer timelines, and more money (which the prodigal (wasteful) company does not have much of (see 10K released last week). If they could not meet endpoints in Mild/Moderate patients, chances of meeting it in the Phase II/III severe patients is even less likely as the patients are much sicker.

Moon Kil Woong 4 months ago Author's comment

We differ on this point. I am waiting for more news. It seems like the shorts think any news is bad and seem to blame and discourage the company from reporting (not like they listen to comment boards).

It's up to each investor to decide. If the FDA, the company, or the company that loaned them millions recently thought there was no chance, I doubt any of them would approve doing phase III. The FDA has better things to do, that's why they don't want to do another hydroxychloroquine trial despite the President's insistence. If the company didn't think it had a chance it would not do it to save money. And if the investor didn't think it would work, they most likely would not have loaned them millions. Unfortunately the other person doesn't agree because he thinks the company is lying. If they were fraudulent, I think they would just not do a trial, not submit to the FDA, not bother doing a lot of interviews, and pocket the money.

Anyways, the stock like any drug trial is a risk and it's up to each investor to determine if its worth the risk and how much to invest. I remain invested and positive although I think they have good chances with Cancer and HIV as well. So that makes me a longer term investor.

I hope this helps.

Ketan Desai 5 months ago Contributor's comment

Looks like shorts were right and you were wrong.

Moon Kil Woong 5 months ago Author's comment

Here's is more info although there is a company event today as well.

www.youtube.com/watch

Moon Kil Woong 5 months ago Author's comment

A recent post on CYDYs recent release.

insiderfinancial.com/.../180253/

Moon Kil Woong 5 months ago Author's comment

Cytodyn's Covid result release is very good. It appears there is disappointment that there isn't immediate approval. There may yet be fast approval, however, irregardless the results disclosed so far meet their endpoints. www.otcmarkets.com/.../CytoDyn-Announces-Clinically-Significant-Top-line-Results-from-its-Phase-2-Trial-in-Mild-to-Moderate-COVID-19-Patients Anyhow, the data is going to the FDA. Despite the market's apparent confusion, this is clinically positive news.