Sahm Adrangi is no stranger to fighting companies that look to be performing shady business practices and in the past, he has gone against some of the biggest biotech companies in the game. Proteostasis, a biotech company, has recently made claims to have found a breakthrough treatment for patients suffering from the debilitating disease, cystic fibrosis. This new drug, which is said to improve lung performance in patients, is called CFTR amplifier PTI-428. Kerrisdale Capital, Sahm Adrangi’s company, issued a negative report on Proteostasis that claims their breakthrough treatment is nothing more than a drug cocktail.
Analysts are Kerrisdale have investigated the biotech companies claims and have found it to be highly suspicious. According to Proteostasis, their study only consisted of four patients, which is hardly enough to be considered an accurate experiment, nevermind a breakthrough for a complicated disease. Looking at the results published by Proteostasis, the placebo group turned out to have negative side effects, with an actual decrease in lung performance, opposite of the control group. When peering through Proteostasis’s data, it is not nearly complete and doesn’t offer much in terms of their results.
Sahm Adrangi has also noted that Proteostasis’s stock value is majority invested in their product, and they recently had to pull nine million dollars from their shares to continue funding their work. Since Kerrisdale report became public, Proteostasis’s stock value dropped tens of millions almost overnight. Kerrisdale also stands to profit in the face of this biotech companies demise, sitting tightly in the short position. Any investor should be able to see the red signs associated with Proteostasis with a little digging, but Sahm Adrangi has warned investors to stay away regardless. Under attack from Sahm Adrangi, Proteostasis is not looking so good. Sahm has a strong reputation in the business world and as an investor, meaning his advice is quickly mimicked within the investor community.