tags: [analyst/white-diamond, thesis/fraud, potential/short] ...

2023-04-11

We've got a good short idea for you guys today. It's a small biotech called Greenwich Lifesciences (GLSI).

Greenwich LifeSciences (GLSI) is a Phase 3 biotech that has only one experimental drug in its pipeline, GP2, which is a vaccine to prevent the recurrence of breast cancer following surgery. All peer reviewed publications of the GP2 Phase 2 results show a lack of statistical significance, which suggests the vaccine is a failure. GLSI claims statistical significance in the Phase 2 trial only after data manipulation which they presented in an obscure poster presentation. GLSI’s poster has numerous red flags, such as false statements and the unexplained exclusion of patients from the data. Announced in mid-2022, the Phase 3 study struggles to enroll patients. We spoke with some of study’s site contacts, and learned that 12 of the sites that have been actively recruiting for 7 months haven’t found a single willing participant for the trial. No site contact that we’ve interviewed has recruited anyone yet. With the Phase 3 study’s current design, we estimate the final vaccine data results won’t be available for another 12-20 years. GLSI’s CEO, Snehal Patel, uses the company like it’s his personal piggybank for him and his family. Patel had the company buy a Covid vaccine from him, then did nothing with it. To pump the stock, Patel and another executive, Jaye Thompson, have made tiny insider buys that are much less than what they receive in salary from GLSI. Galena, which tried to develop a similar vaccine and was initially led by the same group of people, was a pump and dump scheme; we see GLSI as a similar insider enrichment scheme. We assign a $3 price target on GLSI.

2023-04-17 Mon 11:58 AM: stockprice has gone down a bit, not cratered, with latest revelation. Maybe worth a punt.