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Monday, May 4, 2020

CytoDyn down as CEO sells stock while touting COVID-19 drug

CytoDyn (OTCQB:CYDY -8.8%) is under early pressure on the heels of a report from STAT’s Adam Feuerstein questioning management’s motives behind its aggressive promotion of leronlimab for the treatment of COVID-19 patients.
The company has released a blizzard of press releases (~26 since the first of March) while CEO Nader Pourhassan has appeared on a range of financial news shows touting the potential of the CCR5 inhibitor to treat the respiratory infection. Two studies are underway, one in mild-to-moderately ill patients and one in critically ill patients.
The stock broke out on March 27 after it announced that four COVID-19 patients with respiratory complications treated with leronlimab experienced near-normal immune profiles with improved cytokine levels. Shares have rallied three-fold since then.
A regulatory filing posted on Thursday, April 30, disclosed the potential sale of up to ~46.4M common shares by current investors, including 2.0M shares by Mr. Pourhassan pursuant to warrant exercises. He also apparently plans to sell an additional 2.8M shares, trimming his ownership stake by half.
https://seekingalpha.com/news/3568282-cytodyn-down-9-ceo-sells-stock-while-touting-covidminus-19-drug

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