Sahm Adrangi of New York City’s Kerrisdale Capital Management recently sent out a negative report in regards to Proteostasis Therapeutics, Inc. At the same time he announced the schedule for the conference calls he would be holding to go into further details about this firm. He said he was taking a short position on Proteostasis Therapeutics which means if this company’s stock prices go down his firm’s hedge fund will increase in value.
Proteostasis Therapeutics is a biotech firm and the value of the entire company is basically based on one drug they have under development, PTI-428. This is a drug candidate which is being investigated as a cystic fibrosis therapy. When the FDA gave this drug both their Orphan Drug and Breakthrough Therapy designations investors drove this company’s stock prices up about 100%.
We short (misguided) innovation for a living, but shorting bitcoin or doubting cryptocurrencies is nutty. The mkt opportunity is massive https://t.co/Q4vsI9nuyf
— Sahm Adrangi (@SahmAdrangi) September 25, 2017
However, Sahm Adrangi says that his company’s analysts determined that this drug candidate is in all likelihood ineffective. They also pointed out that the there was a troubling pattern of low-quality data in regards to PTI-428. They also spotted that Proteostasis Therapeutics had omitted some details from their public disclosures about this drug candidate which the also found troubling.
In the negative report, Sahm Adrangi indicated that his company would be hosting a conference call on March 20th at 10:30 am ET. He said he would go into further details during his call showing why Proteostasis Therapeutics stock is now very overvalued. He also gave out the phone numbers to call for both those in the United States and those who were calling in internationally.
Sahm Adrangi is a graduate of Yale University and he is 33 years old. He started out in the financial industry as an analyst. For a number of years he worked for Longacre Fund Management which is a privately held investment firm. As of when he left Longacre in 2008 it had about $1.2 billion in assets under management. His specialty as an analyst at this company was to investigate distressed debts in order to possibly invest in them. Prior to that he had worked for Chanin Capital Partners and Deutsche Bank.