Capricor Therapeutics' stock price retreated today after soaring 253 percent yesterday on the news that one of its products had successfully treated a small group of critically ill, Covid-19 patients.
The price closed today at 7.00, down from yesterday's close of $8.50. That was the highest price for the Beverly Hills firm since 2018.
While the news about its CAP-1002 treatment excited investors, it did not stir the news media. In the glut of hundreds of stories about the coronavirus, the mainstream media did not even mention Capricor. Nor did the Los Angeles Times, virtually the home town paper for the firm. As for the California stem cell agency, which has pumped nearly $25 million into Capricor-related research, the role of the agency was also among the missing.
The Los Angeles Business Journal did carry a tidy and straight forward story, again one that did not mention the stem cell agency, which is hoping that California voters will save its financial life next fall. That is, if they approve a proposed, $5.5 billion, ballot measure that has already missed one state-recommended deadline (April 21) for qualifying for the ballot. BioWorld also had a story that did not mention the California agency's role.
The agency is running out of the $3 billion that voters provided for it in 2004 when they created the unprecedented state research program. It will begin closing its door in six months unless major funding is found.
The sparse news coverage of the agency will be a challenge for the agency's backers as they seek voter approval of the ballot measure, assuming it qualifies.
From reader Ed Snively: "This is troubling to me because the company (Capricor) should have made more of an effort in explaining the critical help CIRM provided. I think you need to be more proactive in calling out the ballot initiative proponents for letting this golden opportunity slip through their fingers. If I am on the CIRM committee I would have a cot in the developer's office. and I would darn well insist on being a part of the interview/press release. It might be possible for an aggressive article of CIRM support of this development, but that won't happen with ballot supporters sitting on their hands. My big fear, and you have clearly addressed it, is the increasing likelihood that the initiative will not qualify for the November ballot.
ReplyDeleteKudos to David Jensen for the best -- and unfortunately only -- coverage of this new Covid-19 success. But in the meantime, the Golden Goose is going to expire as the beneficiaries sit on their asses concerning their press releases about projects financed by CIRM. GET MOVING!
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