Citizens for Responsiblity and Ethics in Washington (CREW) Requests Securities and Exchange Commission (SEC) Investigate Adam Feuerstein

Citizens for Responsibility and Ethics in Washington (CREW) is a nonprofit 501(c)(3) organization dedicated to promoting ethics and accountability in government and public life by targeting government officials who sacrifice the common good to special interests.

Jul 29, 2014


Washington, D.C. — Citizens for Responsibility and Ethics in Washington (CREW) today requested the Securities and Exchange Commission (SEC) investigate possible illegal manipulation of stock prices in Northwest Biotherapeutics, a biotechnology company developing cancer treatment drugs.  Strategically released blog posts by well-known biotech stock analyst and senior columnist for Adam Feuerstein seem designed to cause the price of the company’s stock to fall at times when short sellers were financially overexposed.  CREW has asked the SEC and the U.S. Attorney for the Southern District of New York to conduct a full investigation of the timing of Mr. Feuerstein’s posts and their relationship to short seller financial interests.

“When several drug companies repeatedly see big stock price dips due to a negative articles published at critical moments — especially when those dips benefit the financial interests of short sellers — it should raise serious questions at the SEC.  Given the suspicious timing of Mr. Feuerstein’s articles, which include misinformation and innuendo, there should be an inquiry into whether there was a deliberate effort to manipulate the market for profit,” CREW Executive Director Melanie Sloan said.

CREW’s request for an investigation highlights several examples where Mr. Feuerstein’s blog posts and Twitter communications appear intended to send the stock prices plummeting of three pharmaceutical companies — Northest Biotherapeutics, GTx, and Mannkind — at a time when short shares were at a peak.

On June 18, 2014, Northwest Biotherapeutics’ stock was trading at $8.97, a near record high for the stock.  Prior reporting from noted the “intense shorting program” aimed at the company’s stock and that the rising stock prices set the stage for a “major short squeeze.”  The following morning, before trading began, Mr. Feuerstein posted a series of tweets hinting the company had received bad news related to testing of its promising cancer drug.  He then posted a blog item criticizing the company for releasing interim testing data, and quoting a doctor not involved with the study who suggested the company’s release of data was both highly unusual and inappropriate.  As a result, by the close of trading on June 19, the stock lost 20 percent of its value and has continued to slide.

CREW’s letter to the SEC also notes similar suspicious timing related to Mr. Feuerstein’s reporting on drug companies GTx and Mannkind.  As GTx’s stock reached near-record levels in July 2013, Mr. Feuerstein published an article predicting the failure of a critical drug trial, citing an unnamed short seller as a source.  Mr. Feuerstein refused to correct the multiple errors in his article despite a point-by-point refutation by a GTx investor posted on  Similarly, in March 2014, Mr. Feuerstein published an article predicting a 60-percent chance the Food and Drug Administration (FDA) would reject the company’s new drug, Afrezza.  By the end of the day, Mannkind’s shares were trading at a 10-month low.  Contrary to Mr. Feurstein’s prognostication, on April 1, an FDA advisory committee granted marketing approval for Afreeza by a vote of 13 to 1.

“Where there is smoke, there’s often fire.  Maybe it’s just a coincidence that Mr. Feuerstein’s unduly negative articles appear at critical moments for these companies, but it certainly merits an investigation,” Ms. Sloan said.


Read CREW's Letter to the SEC and Supporting Exhibits





Why Attack Spectrum Pharmaceuticals? Part 4

4 August 8:10

Spectrum Pharmaceuticals Battles the Shorts and Adam Feuerstein

Part 4 will be Released Soon! In the Interim: Another Great Call by Adam Feuerstein:

Spectrum Pharmaceuticals Generates Cash from Operations, Reports Third Consecutive Profitable Quarter, and Record Revenue for the Three- and Six-Month Periods Ended June 30, 2011; Strongest Financial Position in Company History

  • Outstanding Financial Results Include Three- and Six-Month Total Revenues of $45.4 Million and $89.0 Million, Respectively, Vs. $12.3 Million and $23.4 Million in 2010
  • Over 350% and 400% Increase, Respectively, in Three- and Six-Month 2011 Product Sales Vs. Three- and Six-Month 2010 Product Sales
  • $165 Million In Cash, Cash Equivalents, Investments and Receivables as of June 30, 2011, an Increase from $141 Million as of March 31, 2011
  • FUSILEV® Received FDA Approval for Advanced Metastatic Colorectal Cancer on April 29, 2011
  • Two New Drug Application Filings (Apaziquone and Belinostat) on Track for 2012


Why Attack Spectrum Pharmaceuticals? Part 3

15 July 11 18:10

Adam's Feuerstein's Intentionally Misleading Headlines and Distorted Articles- Another DNDN?

On May 4th, 2011 Spectrum Pharmaceuticals Reported Record Profit and Record Revenue for First Quarter 2011, a Four-Fold Revenue Increase over First Quarter 2010.   The impressive quarter included:

Record Quarterly Net Income of $13 Million, or $0.25 Per Basic Share
First Quarter 2011 Total Revenues Were $44 Million Compared to $11 Million in First Quarter 2010
Approximately $141 Million in Cash Equivalents

From the Company Press Release:
“We are very pleased to report record profit and record revenue in the first quarter,” said Rajesh C. Shrotriya, MD, Chairman, Chief Executive Officer, and President of Spectrum Pharmaceuticals, Inc. “This is our second consecutive profitable quarter. With modest needs for running our day to day operations, we believe Spectrum is firmly on the road to continued success. These results will support development of other pipeline drugs that we believe may hold even greater potential. Our goal is to bring novel drugs to cancer patients as quickly as possible by employing our risk mitigating strategy. We take great pride in maintaining strict fiscal discipline. Spectrum has no debt and we do not need to raise capital at this time to fund our day to day operations.”

Within hours of releasing these fabulous quarterly numbers, Adam Feuerstein fired off another one sided attack piece on SPPI: Spectrum Pharma: Zevalin Bubble Deflates.   His third one sided hit job on the company in 45 days.  The article, a completely slanted view of Spectrum Pharmaceuticals, focused entirely on the sales of ZEVALIN (one of two FDA approved drugs the company sells).  The intentional one sided hack job completely ignored the phenomenal quarter the company just had selling Fusilev (which Adam had previously incorrectly stated was a result "one time surge" in sales), in addition to completely ignoring the company's late stage pipeline of blockbuster drug candidates (Eoquin and Belinostat).   As you can see in the headlines below from two reputable media sources (AP & Reuters) Adam was clearly trying to mininize the company's recent success in his article and his headline was undoubtedly misleading.

Reuters: Spectrum Pharma Q1 results blow past expectations


AP: Spectrum reports 1Q profit on sale, lower costs

Why was Adam being so negative in his article again?  Why did he use another misleading and negative headline?   Clearly,  Adam was alone in seeing anything negative about the quarter after reading the stories above.  What was his agenda for attacking SPPI which seemed to have so much going for it?  With two marketable drugs, $150 Million in Cash, and a robust pipeline of late stage oncology drugs and no need to raise money shouldn't have there been better targets for Adam. Who would benefit from so many negative articles written about the company? Did Adam really think he was 'helping" his readers with his "analysis" or lack there of or was he trying to help someone else? Was Adam continuing to write negatively about the company in attempt to influence the share price?

Only two days later, Adam continued his attack on the company in his weekly biotech mailbag. In his latest attempt to tell a one sided story about Spectrum, he claimed he was “old buddies” with Rajesh C. Shrotriya, MD, Chairman, Chief Executive Officer, and President of Spectrum Pharmaceuticals, Inc.  Adam then found a way to bring up more negative things about the company that had no basis in reality.  In the weekly biotech mailbag, he brought up Satraplatin, a drug failure from over 5 years ago again without mentioning anything at all about the blockbuster pipeline that company has (2 NDA's in 2012) or the increasing earnings and revenue quarter over quarter that the company has produced.  Of course, Adam didn’t stop there.  Although the company in their quarterly press release (linked above in bold) and during the quarterly conference call stated definitely that the company had NO reason for any additional capital raises (and subsequent resulting dilution) Adam wrote:

“but Spectrum's 10-Q does state the company could raise money to fund new drug licensing or acquisition opportunities. Spectrum is also seeking shareholder approval to increase the authorized share count.”

Was Adam calling Raj his “old buddy” a liar?  Why else would he add this to the article?  Why was Adam trying to confuse readers with old news on a previous drug failure from over 5 years ago that very little with the company today and why was he trying to bring up a capital raise and dilution when the company and CEO clearly said otherwise?  Why was Adam leaving out so much positive information about the company in article after article?  Adam, a failed biotech analyst and political science major turned "journalist", clearly knew he was not giving a full an impartial analysis of the company to his readers. Why?  Who would benefit from these misleading attack pieces?  Surely not the retail shareholder long SPPI's Stock, but rather the hedge funds and short sellers that had doubled their position since Adam began writing about the company. The damage was done.   Spectrum Pharmaceuticals Inc. fell 6.4 percent to $7.60 the day following the release of Adam’s most recent attack article.   Why was it that these attack pieces on SPPI seemed to come exactly at the same time heavy shorting occurred in the stock?  What was the correlation?  Why the huge volume spikes on the days of Adam’s articles?  Why not any other day? Was Adam being used by a hedge fund or did somebody or someone know what Adam was writing?

What is also interesting is why did Adam have the lone negative views on the company?  Below are stories written by other analysts who cover SPPI during this time period. Please note the positive nature and balanced reporting in these articles.

Teva Positioned to Acquire Spectrum Pharmaceuticals?

Full Steam Ahead for Spectrum Pharmaceuticals

Again, what was Adam’s reasoning for writing so many one sided attack pieces on a company that otherwise had a lot going for it?  After researching some of Adam's previous work, we found that his coverage of DNDN with similar misleading headlines and one sided attack pieces was very similar to that of SPPI. Like with SPPI, Adam's prognostication on DNDN's future could not have been any further from the truth. Like DNDN, SPPI shared similar very large short positions by hedge funds at the time of Adam's articles. You only have to look to who would benefit from such articles about DNDN and SPPI.  Those shorting the company. In both cases, shorts had a lot of exposure to huge unexpected upsides and needed something to assist them in covering before a short squeeze cost them Millions of dollars. Was Adam once again trying to "assist" the shorts so they could cover?

Stay Tuned for part Part 4 of our Series- Where SPPI & Shareholders fight back against Adam and the Short Sellers.

***Shares of SPPI were at a new 52 week high at the time of publication of this story . The stock is now up approximately 40% since Adam began attacking the company. Total Shares Short have climbed to 8.2 Million Shares during this time period as well.

Why Attack Spectrum Pharmaceuticals? Part 2

11 July 11 13:10

Where did the Time Stamp Go? Where did the Volume Come From? Why SPPI?

On Monday, March 1th Jim Cramer of Street.Com endorsed Spectrum Pharmaceuticals The price of the stock that day was 7.92.

Only 4 days later Adam came out with his first negative article (and tweet) about SPPI which contradicted his boss's recommendation from 4 days earlier.

Adam Argued:

"Let me explain my tweet further. Spectrum's fourth-quarter results were strong, no doubt, but the numbers were boosted by a one-time surge in sales of its cancer drug Fusilev to $23 million. For comparison's sake, Fusilev sales for the preceding three months of 2010 totaled $9 million."

This was the just the beginning of the unusual analysis of SPPI by Adam. The article was written when Fusilev sales were flying. How was Spectrum's strong quarterly results a "one time surge"? Adam knew that generic leucovorin was not being produced at the time of the article or in the near future due to shut downs at TEVA and other manufacturers. How could he argue the great results by SPPI were a "one-time surge"? He couldn't really believe this could he? When the company announced their numbers for the 1st quarter they were by far the best in the company's history. They recorded revenue of over 40 Million Dollars for the quarter and record earnings as well. Adam had blown his prediction of a "one time surge" and the company had doubled the sales from the previous quarter. Net annual sales of Fusilev are expected to be around 130 Million for SPPI about 100 million above Adam 's prediction. After this failed prognostication, Adam didn't move on to bash another stock instead he doubled down on SPPI.

Just 5 hours before the shareholders of SPPI were awaiting FDA approval for expanded use of FUSILEV for colorectal cancer, Adam wrote the following attack piece on SPPI. The headline Spectrum Pharma: Fusilev Bubble Will Burst was a one sided hack job that left out numerous details supportive of SPPI, it's portfolio and Fusilev's potential. The article was published at 10:23 AM. Immediately following the release of the article, SPPI shares tumbled almost 30% with daily volume spiking to 7.4 Million shares or 6 times the average volume with an inordinary amount (Several Million) of it coming precisely when Adam's article was released at 10:23. All of this while Wall Street was exceedingly bullish on Spectrum ahead of the approval. The six analysts covering the stock all had either strong buy (1) or buy (5) ratings on the stock, and the median 12-month price target sat at $10.50. Where did these shares come from? Who was selling? Why the volume explosion exactly at that time of Adam 's Article?

Date Open High Low Close Volume Adj Close*
Apr 29, 2011 10.53 10.63 8.06 9.00 7,400,000 9.00

Then something very strange happened, precisely when shareholders of SPPI went ballistic in their comments to Adam and accused him of unethical behavior on his blog (many are available to still view here) the time stamp on the Fusilev article he released changed. But why? The time stamp of the article changed to 10:51 am EST almost 30 minutes after the original release. Why did this happen? One thing is for sure. The volume and force of the selling was something that hadn't been seen ever in the stock's trading history especially considering it was in the midst of it's best financial quarter ever on record revenues and earnings and a pending favorable FDA decision was hours away.

Since Adam began attacking SPPI, the short interest has soared and yet the stock price of SPPI has increased over 30% since then. Stay tuned for the next chapter as we dissect Adam's subsequent attack articles on SPPI.

Spectrum Pharmaceuticals, Inc.NASDAQ-GS
Settlement Date Short Interest Avg Daily Share Volume Days To Cover
6/15/2011 7,201,298 1,397,687 5.152297
5/31/2011 7,018,565 2,014,843 3.483430
5/13/2011 5,639,449 3,126,521 1.803746
4/29/2011 5,577,605 2,202,720 2.532144
4/15/2011 5,194,662 796,277 6.523687
3/31/2011 5,183,482 936,266 5.536335
3/15/2011 4,830,331 1,342,543 3.597897
2/28/2011 4,610,951 781,837 5.897586
2/15/2011 4,072,065 711,050 5.726834
1/31/2011 4,093,171 675,637 6.058240
1/14/2011 3,868,594 856,107 4.518821


Why Attack Spectrum Pharmaceuticals (SPPI)?

Adam Feuerstein has Written 6 Attack Pieces on Spectrum Pharmaceuticals- But Why?

11 July 11 13:10, ExposeAdam .com

In recent months, Adam Feuerstein has written numerous one sided articles about a tiny biotech called Spectrum Pharmaceuticals (SPPI). Today we look at the company and explore some of the problems in Adam 's arguments about the company. Why has Adam spent so much time attacking this one company? In Part 1, we will focus on details about the company and its very promising outlook. Very rarely do you find a developmental biotech with as many diversified products and such a strong balance sheet as you do with SPPI. Recently, a well written article by Shlomi Cohen, Spectrum Pharmaceuticals: A Short Story outlines some of the problems with Adam 's logic and even suggests that "investors suspect Adam Feuerstein is connected to hedge funds that are shorting the stock." Shlomi Cohen is a veteran Israeli financial journalist and stock analyst who writes the popular 'Buy, Sell, Hold' column for Israel's leading financial publication, Globes. Cohen provides in-depth analysis of Israeli and non-Israeli stocks traded on Wall Street, with particular attention to the impact of emerging technologies and executive management strategy. Cohen also manages a virtual portfolio on Globes, which he updates regularly alongside his commentary.

Spectrum Development Pipeline/Portfolio

Spectrum has a broad and diversified portfolio of proprietary drugs in various stages of development in the fields of oncology and urology.

Fusilev® (Levoleucovorin) for injection FDA Approved on April 29, 2011 for Use in Patients with Advanced Metastatic Colorectal Cancer and FDA Approved on March 7, 2008 for High-Dose Methotrexate Rescue Therapy in Osteosarcoma.

Zevalin® (ibritumomab tiuxetan), an FDA-Approved, Proprietary, Biological Drug for Indolent Non-Hodgkin's Lymphoma.

Belinostat a novel HDAC inhibitor in late stage clinical development for Peripheral T-cell Lymphoma, and other Solid Tumors (including Carcinoma of Unknown Primary, etc.)

Apaziquone, one of our lead development candidates, is a synthetic bio-reductive prodrug that is being investigated in the treatment of non-invasive bladder cancer, and began two Phase 3 studies in 2007.

Spectrum also has three drugs in the Phase 2 stage of development: Ozarelix, for the treatment of prostate cancer and Ortataxel, for the treatment of taxane-refractory tumors.

The Company has three drugs in the Phase 1 stage of development: SPI-1620, an adjunct to chemotherapy, Elsamitrucin, which will target advanced solid tumors and Lucanthone, a chemotherapy sensitizer in the treatment of recurrent, malignant brain tumors.

Other drugs in development include RenaZorb™, used in the treatment of hyperphosphotemia in end stage renal disease (ESRD), and SPI-205 for chemotherapy induced neuropathy.


Stock Exchange NasdaqNM
Market Capitalization $503.8M
Trade Volume (Average Trading Volume) 578,838 (1,635,220)
Price/Sales 4.91
Price/Book 5.66
P/E 179.46
Earning/Share $0.056
Current Year EPS Estimate $0.37
Next Year EPS Estimate $0.12
Previous Closing Price $10.05
50 Day Price Moving Average $8.73
200 Day Price Moving Average $7.05
1 yr Target Price $14.42
Short Ratio 4.30

**As of July 11th

Come Back Later as we critique Adam 's recent attack on SPPI. In Part 2 of the segment, we will focus on Adam 's arguements and their flaws. Below is some more information about SPPI in the interim.

UPDATE 7-9: We wanted to thank the thousands of visitors to our website in the first day. We appreciate all the emails, comments and hope you come back often. Again every one here at EXPOSEAdam .COM appreciates your support. We also appreciate all the time the folks at the spent yesterday checking out the site too (thank you google analytics).


Our Purpose:

This website is devoted to providing a forum to rebut and correct the numerous one sided articles written by Adam Feuerstein on behalf of the Adam Feuerstein has been writing for the since 2001 and is marketed as their Senior Columnist although he has never attended journalism school nor does he have any formal education in Journalism. In fact, he has NO formal science background either (he was a political science major at Emory University) and thus his credibility and objectivity as a biotech journalist must be questioned. He has been sued by biotech companies for his one sided attacks . Additionally, his inaccurate reporting has even led to patient safety issues as outlined in this article about Oculus Innovative Sciences. There have been numerous articles written about his one sided tactics and his questionable timing and release of misleading headlines that can be found here. Under the guise of being a biotech journalist, Adam frequently writes misleading headlines and articles that are widely disseminated via the's media network. Our Website is devoted to biotech investors to voice their rebuttals and critiques of Adam 's one sided articles. So you are free to use any information on this site for personal or commercial purposes, modify it or redistribute as long as you keep a link back to ExposeAdam .com with the content. We are always looking for tips about Adam 's Past, his relationships with anyone on wall Street and any possible unethical or illegal activities he may be involved in. Got Something to expose about Adam ? Submit your tip here. Don't Forget to leave comments for us on the bottom of the page. We look forward to your contributions to our site.

Look back soon for our own version of Expose Adam 's Biotech Weekly which will tell the other side of the story to Adam 's Weekly column and rebut the erroneous one sided sell side slant he uses to hurt the retail investors. Additionally, we will be opening a message board soon to openly discuss biotech stocks and any and everything Adam Feuerstein.

Is Adam Feuerstein Working for Hedge Funds?

Spectrum Pharmaceuticals: a Short Story

Those shorting a small, thriving biotech company called Spectrum Pharmaceuticals face an unhappy ending.

30 June 11 21:09, Shlomi Cohen

In recent months, a mini drama has been taking place on Wall Street, involving the managers of a small, prosperous biotechnology company called Spectrum Pharmaceuticals (SPPI), which I am considering bringing into the portfolio I manage here soon, and the short players that have latched onto it. Other cast members are a journalist, over-zealous to my mind, on, and Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), as an unwilling bit player.

Spectrum is run by a well-known figure in the US biotechnology world, Dr. Rajesh Shrotriya (67). His philosophy is that a small company should not develop drugs from scratch, because the costs are huge, but should focus on buying rights to drugs that are at advanced stages of development, and have been abandoned for one reason of another.

Spectrum currently sells two life-extending treatments for colorectal cancer and lymphoma, and it has in its pipeline two more drugs at advanced stages of development, and with large potential... more