The powers that be reviewed my headline and content from this past Tuesday’s edition on Callisto Pharmaceuticals, and we all agreed a correction is warranted as it gave a misleading impression of the company’s intentions for Guanilib.
The headline stated: “Callisto Targets Colon Cancer”. This headline is somewhat misleading.
Callisto has not announced it intends to formally pursue Guanilib as a potential therapy for Colon Cancer. Guanilib has been found to have a possible positive effect on inflammation of the colon. According to the press release, the abstract that will be presented to the Conference on Digestive Diseases reveals the following: the abstract “ will describe results suggesting that oral administration of Guanilib ameliorates inflammation in a mouse model of experimental colitis ”
It is believed Guanilib supplements the absence of naturally occurring hormone uroguanylin in the colon. Deficiency of this hormone is linked to the formation of polyps, which are in turn linked to the possibility of colon cancer.
Somewhere down the road, if Guanilib helps prevent the formation of polyps in the colon, it could have a positive preventative effect on the likehood of colon cancer developing.
However, it is inaccurate at this time to state that Callisto is targeting Colon Cancer. Callisto is developing Guanilib as a therapy for a variety of other gastrointestinal inflammatory diseases including ulcerative colitis.
Comments and questions are welcome.
It seems that despite the – on the first sigth positive newsflow – the share doesn`t react. Do you have any explationf for that? Thanks!
Editor: Since the stock has made a 60% move since last November, I suspect it is going to take some time to consolidate the gains. The fact that is stays up here within a few percentage points of its all time high is very favorable in my view. The last 6 weeks have been pretty tough in the market. Nevertheless, with all the progress they are making, I would like to see the stock trade higher. My suggestion- if you are a long term investor, don’t worry about it. If you are a short term trader, you might want to look for something else.
On Monday Mar 20 on my Yahoo Finance page under Headlines for KAL, The Wall St Journal Online may have had something to say about KAL. I don’t subscribe to WSJ Online. Any clue what it might have been?
Editor: I looked for the article to which you refer, but could not locate anything along those lines. Nor did I see any kind of news at Yahoo finance. If there is some sort of article, you will see a news release. The people handling that for the company are very competent.
Any thoughts on the “Going Concern Qualification in 2005 Audit Report” and drop in stock price??
Editor: Not really. All companys who’s cash flow comes primarily from financings get that label unless they already have 5 years of money in the bank. KAL is financing as needed. They seem fully capable of raising money when they need to. Not a major concern in my mind. If it has caused the stock to drop, that would be a buying opportunity if you like the company in my view.
I read in a recent filing that there was concern about cash flow sustainability, which was by an independent accounting firm. How serious is this for KAL and might this be the reason for the continuing drop in the stock price? Mark
Editor: I believe it is of little concern. The stock dropped a nickel, and bounced a nickel. They only have enough cash for a year or so, but with their technology they won’t have much trouble raising it as needed.
Is KAL oversold at 86 cents?
Editor: No question- that’s probably one that is an easy money bounce at these levels.Â