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Athenex – Bonus Round

Buffalo Soldiers vs the system, and a  summary of Viceroy’s reports this week.


October 25, 2019 – This report serves as a summary to Viceroy’s work over this week, alongside data we have collated on Athenex’s dealing with the NY State Government

The Buffalo Billion is a commitment to the Buffalo, NY area to create jobs, spur investment and promote economic activity. The ambitious plan was committed to by New York governor Andrew Cuomo and first announced in the 2012 “State of the State” address.

The company’s response to Viceroy’s research is a further slap in the face to investors: the company has failed to address a single issue highlighted in any of our reports:

  • Where are the purported inaccuracies” in Viceroy’s reports?
  • Did managements/directors transactions, netting Directors millions of dollars of shareholder capital, not occur?
  • Were Athenex’s management team not involved in Sino Forest, Suntech, GCL Silicon/Poly, China Lumena?
  • Are Athenex’s Oraxol clinical studies using the current USA standard of care for its control base? If not, how can this ever be commercial?

Athenex has called out Viceroy as inaccurate, but have failed to identify a signgle inaccuracy in any of our reports.Viceroy remains short Athenex with high conviction. The number of red flags uncovered within the business and management team surpass any other company we have previously analyzed purely within data sourced from the public domain.

We reiterate our target price of US$2.83, now representing a 75% downside, and will continue to keep investors informed through further reporting.

We conclude that Athenex exists to abuse capital markets and enrich its management through related party transactions and licensing deals rather than bring revolutionary drugs into the market. This activity is carried out through overpromising the prospects of its flagship drug Oraxol and its purported “supply-chain” businesses like Polymed.

Athenex is a perfect storm of investor deception, insider enrichment and clinical trial risks. Investors should demand a full investigation of the issues discussed within this report: we are confident there is more to this story given how much was available purely through the public domain.

In light of the data Viceroy have presented, shareholders must question managements’ corporate governance and protect their rights through independent investigations.

Report 1:

Report 2:

Report 3:


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