Letters/postings about investigation of Avanir by 4 members of congress which many believe is ridiculous.

========================================================

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=231257&mid=231306&tof=22&rt=1&frt=2&off=1

My letter to House Committee on Ethics

“I am writing to you in your capacity as a member of the House Committee on Ethics.

As an investor in Avanir Pharmaceuticals I became aware that Representative Henry Waxman along with 3 colleagues ( Representative Frank Pallone, Representative Diana DeGette and Senator Herb Kohl ) decided that Avanir Pharmaceuticals was in need of an investigation of the pricing of a very recently approved FDA compound for the treatment of a neurological disorder. Given that the drug has barely been on the market for any length of time this is unusual. Even more interesting is the fact that Avanir Pharmaceuticals is one of the most heavily shorted stocks on the stock market. Basically the shorts placed bad bets that the FDA would not approve their neurological compound known as Neudexta. But the FDA did approve the drug and consequently the short selling hedge funds are facing the possibility of a successful drug resulting in a financially ruinous situation for themselves. This brings us to an interesting coincidence when we consider this sudden decision by Representative Waxman to investigate Avanir and their pricing structure as regards Nuedexta. Keep in mind that Nuedexta is so new a product that its prescription count is low and is just starting to become known within the neurological medical community. Even more interesting is the connection that Representative Waxman has to a political contributor of his, a legal firm Akin Gump Strauss Hauer & Feld that happens to represent Short Selling Strategy Funds. On June 14, 2011 Akin Gump Strauss Hauer & Feld's Civic Action Committee will hold a fundraiser for none other than Representative Henry Waxman.

And so the circle closes. Avanir Pharmaceuticals spend many years and $200,000,000 to get Nuedexta approved under the FDA's safety and efficacy guidelines. Wall Street's Short Selling Hedge Funds place a ruinous financial bet against Avanir's success and here Congressman Henry Waxman and 3 like minded colleagues decide that Avanir needs to be investigated for trying to recoup its and its investor's costs ? This isn't right. When companies such as Avanir Pharmaceuticals are punished for innovation and following the rules no matter how costly the endeavour and then are denied an opportunity to recoup their costs and demonized beacuse they may actually at some future date turn a profit then one can soon see the day where no one can afford to take chances and succeed. That is what America is about after all - taking chances and succeeding !

I request that you and your colleagues on the House Committee on Ethics look into this matter.

Thank You”
========================================================
Extract from Summer Street’s Conference Call on May 27, 2011

“We hosted a conference call with a manufacturing consultant to discuss the differences between GMP manufactured medicines and compounded drugs. Compounded drugs are requested on a named patient basis and are prepared that way. When done in hospital pharmacies,
there are inherently a lack of controls for sterility, stability, and potency. This situation may be more dangerous for injectable biologics than small molecules. Nevertheless, we are confident that there is inherit danger
for patients to compound generic versions of dextromethorphan and quinidine to match Nuedexta for PBA. We believe the congressmen who submitted an inquiry letter to Avanir about Nuedexta are uninformed
and have gone after the wrong product and company.

• Our consultant commented that the letter sent to AVNR was unreasonable and could be sent to every drug manufacturer. The two-page letter asks for confidential company information and correspondence that spans at least 10 years. This is nearly impossible to compile within a few weeks and is unreasonable, in our consultant’s view.

• Sterility is a key issue when deciding to compound.

• Other key issues include stability and potency. “

[And the list goes on]

========================================================

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=230727&mid=230727&tof=10&rt=1&frt=2&off=1

You can write her too at healthblog@wsj.com

For Katherine Hobson

Katherine,

I'm a financial journalist in.......and read with interest your piece on the congressional investigation into the pricing of Avanir's Nuedexta.

Leaving aside the questions about whether AVNR has indeed priced the drug irresponsibly, I think another part of the story is why this investigation now and why this company?

AVNR is a small under the radar biotech which just happens to be one of the most heavily shorted stocks on NASDAQ. The stock is highly manipulated and very volatile.
Right before the story broke about the looming investigation, AVNR's stock price had raced higher on heavy volume and was close to breaking through a critical resistance area to the upside. Very good news about market acceptance of Nuedexta and prescription growth precipitated the upside move.

Then, boom, news of the letter from Waxman, et al hit the wire. As one covering analyst from Wedbush put it: The timing is "interesting".

I think it would be worth looking into how little known AVNR got on the radar of congress and whether some behind the scenes influence from the shorts was/is at play here. The shorts stand to lose a huge amount of money if the price of AVNR stock continues to move up (as it did today).

Thanks,
========================================================
The Honorable Jo Bonner
Chairman, House Ethics Committee
1015 Longworth House Office Building
Washington, DC 20515

Dear Chairman Bonner:

Yesterday, three of your congress members, along with Senator Kohl, were signatories on a letter to Avanir Pharmaceuticals. In this letter your colleagues made misleading or false allegations that could have caused irreparable harm to this company. A Congressional investigation is not a small matter and your colleagues must evidence a clear understanding of its potential devastation to the reputation of individuals and companies.

I am an investor in Avanir and have been for over 30 years so I know the history of this company very well. They have worked diligently to develop a drug called Nuedexta which controls PBA (uncontrolled laughing or crying), a debilitating and isolating condition that can ruin a person’s life. After many years of work and millions of dollars of investment, the drug was finally approved by the FDA in November. Now, just as the company is beginning to reap some very small rewards, your colleagues have decided they know more about pricing the product than the management team that developed it.

These congress people and this senator are trying to cast this drug as too easy so it is therefore overpriced. If it was so simple why didn’t someone develop it many years ago? If it was so obvious why didn’t someone else spend millions on research and development costs before Avanir did? And those costs were incurred at the risk of never seeing a dime of return. How can these people function as protectors of the American way of life when they don’t even understand how it works?

Chairman Bonner, this event deserves some serious inquiry on the part of your committee. Congressman Waxman is keen to haul individuals and companies before his committees; it is high time he had to answer for his own transgressions. He, and your other involved members, should have to answer the questions: Who authored this letter? Who stood to gain from the doubt this letter would cast on Avanir? Are you aware of a single pharmacist who ever compounded the product developed by Avanir for $20? If you don’t, where did that number come from? If none of you wrote the letter why would you sign it without verifying its accuracy? Why was this company singled out?

These Congress people and this Senator are likely to have acted as unwitting pawns for investment interests as yet undiscovered. Your committee should have the gumption, the curiosity, the honorable intent to find out who was actually behind the letter’s origin. It was NOT a grandma in Detroit.

In the end, these members should be severely chastised for so blatantly disregarding their responsibility to act without prejudice in conducting the people’s business. We deserve much better than we received in this instance.

Thank you for considering this suggestion and the best of luck in all of your endeavors. You have a very difficult job, Chairman Bonner. If this is any example of what you have to police I’m guessing you don’t lack for something to do.

My very best,
========================================================
In research report, Wedbush writes, "On Tuesday after market close, the US Special Committee on Aging issued a press release detailing a hearing to be held regarding NUEDEXTA pricing. Response from AVNR has been requested by June 10, 2011; additional details about the inquiry are at http://aging.senate.gov/hearing_detail.cfm?id=332984&

We see no material impact on NUEDEXTA sales given this inquiry and view this as potentially a positive opportunity that will result in greater visibility of the product.

Any weakness in AVNR shares caused by this event would be a buying opportunity, in our opinion. The timing of this inquiry is “interesting”, in our opinion, considering the recent run up in the stock and high short interest in the name."
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=231046&mid=231046&tof=13&rt=1&frt=2&off=1

Waxman-hedge fund link? Judge for yourself...

Check out he bottom of page. Note the fund raiser on 6/14/11 and the Host - Akin Gump Strauss Hauer & Feld

http://www.opencongress.org/people/money/400425_Henry_Waxman

What is Akin Gump Strauss Hauer & Feld?

http://www.akingump.com/investment-funds-litigation-practices/

Read the "Our Clients" section. It includes "short selling strategy funds".

I find this interesting, to say the least.

========================================================

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=231591&mid=231591&tof=4&frt=2

Since when does a steak cost thousands of dollars?????

Who is calling the kettle black? I can't even afford a cup of ice at these prices:

When: June 14, 2011
What: Dinner
Where: Charlie Palmer Steak
Host(s): Akin Gump Strauss Hauer & Feld Civic Action Committee, AT&T Inc Federal PAC
Beneficiaries: Henry Waxman
Contributions: $2,000 PAC; $1,000 Personal
Make Checks Payable To: Congressman Waxman Campaign Committee
When: September 30, 2010
What: Cocktail Reception
Where: Johnny's Half Shell
Beneficiaries: Henry Waxman
Contributions: $5,000 Co-Host; $2,500 PAC; $1,000 Individual
When: October 27, 2009
What: Cocktail Reception
Where: Charlie Palmer Steak
Beneficiaries: Henry Waxman
Contributions: $5,000 Co-Chair; $2,500 PAC; $1,000 Individual
Make Checks Payable To: Congressman Waxman Campaign Committee
When: June 23, 2009
What: Breakfast
Where: Charlie Palmer Steak
Host(s): Akin Gump Strauss Hauer & Feld Civic Action Committee
Beneficiaries: Henry Waxman
Contributions: $2,000 Sponsor; $1,000 Guest
Make Checks Payable To: Congressman Waxman Campaign Committee
When: September 18, 2008
What: Cocktail Reception
Where: Charlie Palmer Steak
Beneficiaries: Henry Waxman
Contributions: $5000 co-chair, $1000 guest
Make Checks Payable To: Congressman Waxman Campaign Committee
When: September 20, 2006
Where: Johnny's Half Shell
Beneficiaries: Henry Waxman
Contributions: $5,000 Co-Chair; $1,000 Guest
Make Checks Payable To: Congressman Waxman Campaign Committee

========================================================

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=229633&mid=229633&tof=19&rt=1&frt=2&off=1

Folks, I talked to an analyst. He said he's not worried about this at all and doesn't think they company is worried about it either. It's flat out a stupid step.

The analyst said it's all about script numbers and once the stock marches past $5 shorts have to think hard if they want to maintain their position or cover (covering is smarter as big funds qualify after $5).

I am convinced it's the short lobby that's behind the investigation.

Here are their fax numbers. Don't rely on email. Fax them your letters.

Representative Waxman
Fax (202) 225-4099
Fax (323) 655-0502

Senator Kohl
Fax: (202) 224-9787
Fax: (414) 297-4455

Here's my letter:

"Concerning your investigation of Avanir, I am afraid you may have fallen for the lobbying of big hedge funds who have shorted over 30 million shares of Avanir. The timing of the announcement perfectly coincides with a rally which would have caused these shorts 100's of millions of dollars in losses but instead they got a much needed relief. The allegation is utterly bogus and frivolous. Knowing what good men you are, I suspect the short sellers have tricked you into this.

I can assure you, this company has been working very hard, in the most difficult condition and with huge expenses, to bring their drug to market to help people who have no other treatment.

The only parties benefiting from your investigation are hedge funds who have short sold a quarter of the stock's float. Please be on the side of Main Street not Wall Street and drop your absolutely ridiculous investigation of Avanir.

Thank you"
...
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=229647&mid=229647&tof=32&rt=1&frt=2&off=1

The following article and responses to it are are from:

http://seekingalpha.com/instablog/657461-bert-wilkison/181373-has-avanir-been-unjustly-targeted-for-a-congressional-pricing-inquiry

Has Avanir Been Unjustly Targeted for a Congressional Pricing Inquiry? 7 comments
May 25, 2011 3:06 PM | about stocks: AVNR
By Bert Wilkison


Shares of Avanir Pharmaceuticals (AVNR) had recently risen by more than 20% over a two week span due to improving and increasingly impressive weekly prescription data for its flagship product, Nuedexta. Nuedexta is a drug used for the treatment of pseudobulbar affect, a disease which is characterized by involuntary, sudden, and frequent episodes of laughing and/or crying. It can dramatically alter its sufferers' qualtiy of life.

No sooner did Avanir begin to silence some of its critics (and some "journalists") by demonstrating success in the market than it received a most peculiar letter from the US Congress, specifically the Senate Special Committee on Aging. It was signed by Herb Kohl, Henry Waxman, Frank Pallone and Diana DeGette. In the letter, Avanir seems to be accused of charging too much for its recently FDA approved product.

From the May 23, 2011 letter:

“Doctors and patients were understandably upset at the news that this drug, once available for about $20, was now going to be $600. In order to address these concerns, we request that Avanir Pharmaceuticals submit written documentation in response to the following questions and requests for information. The Attachment of this letter will specify in full detail what materials are to be included in response to this request.”

If it's congress' desire to include Avanir in a pharmaceutical-industry-price-gouging-witch-hunt, it would serve them better to get all of the facts straight:

“In October 2010, Avanir obtained FDA approval for this combination and received a three year term of exclusive marketing.”

Incorrect, as Avanir has patent protection that extends well beyond three years.

“Doctors and patients were understandably upset at the news that this drug, once available for about $20, was now going to be $600.”

Not true. Nuedexta has never been available for $20 or anywhere near that amount.

“Some analysts project revenue from Nuedexta to be approximately $4,365/patient after stocking fees and discounts are subtracted from Nuedexta's stated annual wholesale cost of $5,868.”

Most unusual and inaccurate. The author seems to have used the $4,365/patient figure from a 2-part Avanir article that I co-authored in March, which takes into consideration estimated royalties Avanir must pay on gross sales of Nuedexta that will be subtracted by the company as COGS and, as such, shouldn't be part of GAAP revenues.

Avanir's stock traded down as much as 8.89% on Wednesday in reaction to the letter, even though it was pointed out by multiple analysts covering the company that the congressional inquiry should have little or no impact on Nuedexta's sales which are, as previously stated, currently on the increase.

Who brought Avanir/Nuedexta to the attention of a US government special committee?

Jack Mitchell, chief of oversight and investigations at the U.S. Senate Special Committee on Aging, who is listed as the primary contact on the above referenced letter, refused to comment as to how or why Avanir was targeted and has yet to return a follow up call.

Is someone intentionally trying to throw a stick into Avanir's spokes just as the growing company is beginning to gain some market momentum? I'll leave that for you to ponder. I will say, however, that the timing of the release brings back the memory of the stock's highly suspect flash-crash of 10/29/10 (the day Nuedexta was approved by the FDA).

For now, I see no need to go into any detail as to why I feel the committee's inquiry is a blatant attack on capitalism and a slap in the face to a company that has spent several years and millions of dollars in effort to bring a safe and effective drug to market. Regardless of how or why the US Senate came to be involved in Avanir's affairs, I believe the sell-off which was sparked by the news of it should be viewed as a buying opportunity.

I am long AVNR.
------------------------------------------
Good post Burt. I called the chair on behalf of the elderly myself at the number listed (202) 224-5364 and left a complaint. They are opening themselves up to investigation and lawsuits into why and how they specifically targeted AVNR.

This Congressional complaint is nothing more than a pat on the back to the hedgefunds and a slap in the face to the investors that have been following and tracking AVNR for years. If you count all the cash AVNR has burned on this pipeline pill, from start to finish, it is easily 100's of millions of dollars of RND. Then count advertising, salesmen/women, doctors, employees, lawyers, congressional complaint responses.

This is nothing more than a joke. I take a medication that costs roughly $1000 per monthly supply. Cost to me is about $80 a month, because i have insurance. If we are going to start counting pennies, lets ask apple how much it costs to make an IPOD or IPHONE that is manufactured in China? I can tell you that the medication i take, does not cost nearly the price that they are charging, it is all based off RND and patents. This senate subcommittee apparently thinks we live in China and are communists.

Final thoughts -- Lawsuits are going to start flying against hedge funds, shorts, the street and these jokers for being swayed by some squeaky wheels that are losing money based on manipulation of the stock market.
-Teddie
------------------------------------------
It seems rather than investigating the price of Neudexta for whatever reasons the congress came up with. Our tax payers money would be better off spent investigating the people behind who created this supposed scandal. I have been following Avanir for more than 10 years and I am sure that ths $275million number has been exceeded with all the red tape that they have had to deal with... And just when you think ok finally they have survived the worst of FDA rejections, procedural review sessions, mal-intentioned management, stock manipulation, going from $18 to.50 in a matter of months in 2006, this letter comes out...
I think there's something scandalous going on and its not with the pricing of Neudexta.

WAKE UP look into all prescriptions and their costs and see that percentagewise the pricing for this drug is probably similar to other pharmaceutical companies. Our tax dollars need to be used in more worthy causes. And to know Adam F is behind this tells me something fishy going on in DC...smells rotten almost evil.
------------------------------------------
Nice article Bert, I agree with your points.

Its because of AVNR that we know to combine DM and Q (ok, they purchased that IP but same thing), that physicians are becoming aware of the true impact and prevalence of PBA, and that there is a new and seemingly more effective treatment for PBA.

What did they do to bring that out?...well, they spent the greater part of the last decade running trials, teetering on the edge of bankruptcy/delisting, selling their only FDA approved product to finance continued development after the initial approvable letter, selling their only other promising pipeline product (now entering late stage trials by another company) to finance continued development after the initial approvable letter, and spending >$200 mil in total.

Can Congress say they didn't innovate? Spend huge resources? Take a huge risk of losing it all? After all that its simply noxious to even be grouped with URL and KV.A .

This will all blow over due to the factors you list and those above. But the error-filled letter sent out (they even misspelled both the drug name and one of its components) reflects poorly on those we've elected to "protect the peoples' interests".
------------------------------------------
I encourage anyone concerned about this to send an email to mailbox@aging.senate.gov, as I did this morning. Here's what I sent:

I’m writing concerning a letter recently sent to Avanir Pharmaceuticals questioning the pricing of its recently approved drug, Nuedexta.

The premise stated in this letter is, “Doctors and patients were understandably upset at the news that this drug, once available for about $20, was now going to be $600." This is a complete fabrication.

The letter suggests that the ingredients in Nuedexta were widely prescribed in the past and available for $20. That is not true. Quinidine, one of the two ingredients, is not available generically in the dosage used in Nuedexta, and the services of a compounding pharmacist would have been required to create the formulation in Nuedexta. I really doubt that any complaints were actually received from patients or doctors who were using compounding pharmacists in the past to create this formulation.

Avanir is doing pioneering work to develop an understanding of Pseudobulbar Affect (PBA), the indication approved for Nuedexta, and is working hard to develop awareness of this debilitating and under-diagnosed condition. In addition, the company spent years and hundreds of millions of dollars to prove the safety and efficacy of Nuedexta for treating PBA and to obtain FDA approval. Other potential uses for the drug, including several for which there is no effective current treatment, such as central neuropathic pain resulting from multiple sclerosis, will require additional expensive clinical trials and regulatory hurdles. The company deserves to make a profit for doing this work. And it sets pricing based on market conditions, as is its right in our capitalist democracy.

In addition, Avanir has obtained strong patent protection for Nuedexta and is not simply depending on marketing exclusivity conferred by the FDA. Although the ingredients are generic, their combination to address certain neurological conditions is novel and was recognized as such by the patent office.

I can understand the committee’s concern that an unscrupulous drug company might swoop in and gain marketing protection for selling a previously available generic drug, unfairly boosting the price to consumers without adding any value. But that is not what occurred in the case of Avanir and Nuedexta.
------------------------------------------
My letter to the crooked Congressman and those scumbags at The Street (Yes you Adam F)

I am a shareholder of Avanir Pharmaceuticals and I have held and accumulated their shares over the past 3 years.
I am nothing but a retail investor using my retirement money to invest in something that hopefully will make me some money since I know you will never do anything to fix the Social Security system to allow me to receive one penny of that even though I have paid into that system for 25 years now and will pay into it for another 30 years so basically this is all I got to count on for my future.

I believe Avanir was doing something very valuable to help those with MS Pain, Diabetic Nueropathic Pain and of course their approval for Nuedexta to help treat PBA which is crucial for quality of living for patients with ALS, MS, Tramatic Brain Injury, etc.

Avanir did not ask for a government bailout to get the drug through the lengthy FDA approval process, they did not cause oil to go to $100 a barrel, they did not create the housing crisis, they did not cause gold to go to $1500 an ounce, and they did not cause food prices to go up because of $7 per bushel corn prices. Avanir invested their own money and the money of shareholders to get them to the point where they could market and sell the drug and now you want to come out and attempt to keep them from recouping their investment and making enough money to pay their employees and continue to invest in future research and drug approval to improve the quality of life for these patients.

Now that the drug is finally paying off for investors, our government, the same one that made Avanir wait an additional 4 years and spend millions on additional research to market this drug, is now saying they’re making too much money. Avanir isn't even making enough money from Nuedexta to pay for their yearly expenses. There is no way they will make enough to ever recoup the last 10 years of investment in getting to this stage of marketing and drug launch.

This inquiry is a waste of time and taxpayer money and I'm 100% positive there is something better you could be doing. I seriously wonder about its motivation since there are dozens of other pharmaceutical companies and large corporations who are gouging customers everyday but yet you choose a small company that has just now started to begin to work its way to just possible breaking even within maybe 18 months from now. Do you also question how much it costs Microsoft to make a DVD copy of Windows 7 but yet they charge alot more than that $1 dollar DVD.

I would love to know who brought this to your attention because that is who you should be investigating is their motive and the affect that had on the stock price.

I have worked at government facilities during my time in the military and my time as an electrical engineer doing work on military programs and if you are worried about waste start focusing on that because that is nothing more than middle class welfare. When I look around and people are sleeping and reading magazines during work hours and I'm the only one working it makes me wonder when the last time someone walked through these military depots and questioned these government workers and why they get paid $50,000 to $100,000 to do absolutely nothing. Of course you don't care about wasting taxpayers money you only care about creating an environment where small companies can't make a profit to recoup their investment and make money to do further research and bring new drugs to market.

Thank you for contributing to further market manipulation by hedge funds and those who have shorted this stock. You and your colleagues are exactly what is wrong with this country.

My new goal is to make sure you and your colleagues are not re-elected because there is no way this is what I want my government getting involved in when there are so many more pressing issues in the world and especially in the United States.

Note: I was a democrat until I saw this when I woke up this morning. I will never vote democrat again if this is what they want to pull against a company just trying to get back to even!
------------------------------------------
I strongly believe that some big hedge fund guys or investors who are big time short on this stock have bribed some congressional people a few million dollars to target Avanir and are trying their best to derail this company's growth.

Ricky
------------------------------------------
Something about this whole scenario just seems foul, doesn't it, Bert? Your article is well written, stating what some have thought, but would rather not say. Well done.

Sarge
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=228808&mid=228808&tof=8&frt=2

Nothing more than the obvious...tactic to allow short friends to cover. Wonder how many Wall Street "friends" the old boys in Washington are saving with this dog and pony stunt. They all have to go...
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=228614&mid=228640&tof=12&frt=2

The difference from KVA is huge. KVA took huge amounts of government money to test a treatment already on the market then jacked the price an obscene amount.

AVNR developed this on their while skirting the edge of bankruptcy for years to bring an entirely new treatment to market regardless of the fact that the components are older. Congress is picking the wrong fight here.
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=229177&mid=229211&tof=17&frt=2

Several months ago I did some research on the cost of the ingredients in Nuedexta and posted here that the cost was about $20. Compounding services would add to that.

But how prevalent was compounding? The letter suggests that Nuedexta was widely available for $20 and that many patients were affected by the new price. This is absurd. Avanir is spending big bucks to try to build a market that didn't exist before.
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=231396&mid=231397&tof=3&rt=1&frt=2&off=1

One angle I haven't seen expressed yet is the availability of N for our veterans with TBI-related PBA. There would be no good treatment for them if not for AVNR. Even one good case example put forward by AVNR would do wonders to get these jokers to back off.
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=229177&mid=229177&tof=11&frt=2
This was the premise in the letter to Avanir:
"Doctors and patients were understandably upset at the news that this drug, once available for about $20, was now going to be $600."

This is so misleading and false (as others have mentioned). They make it sound as if a lot of doctors were happily prescribing D/Q to treat PBA and the patients were paying $20 for the drug, until big bad Avanir came a long and forced the patients to start paying $600. That is a complete fabrication.

How many doctors/patients are upset that their old $20 drug now costs $600? My guess is zero.
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=229166&mid=229166&tof=22&frt=2

The shorts must be somewhat surprised
A suspiciosuly timed and very rapidly publicized (uhmm) letter to Avanir from Congress, and they just get a 10% drop (from the top yesterday). Notice the volume has dried up... their big down day didn't happen... no chance to cover in the 3s as they expected. Not sure they have many bullets left.

Don't forget we are massively owned by institutions. They have a few phone numbers in their rolodex too.

A lot going on behind the scenes here folks...

Even AF includes in his article:

"The timing of this inquiry is 'interesting', in our opinion, considering the recent run up in the stock and the high short interest in the name," Wade added.
========================================================
Letter is now offline

Interesting... The letter has been taken down. Here is the link that was working about an hour ago:

http://aging.senate.gov/hearing_detail.c...

I wonder if they are making corrections - or just embarrassed by the staggering amount of incorrect information it contained.

http://aging.senate.gov/hearing_detail.cfm?id=332984&
========================================================
http://messages.finance.yahoo.com/Business_%26_Finance/Investments/Stocks_(A_to_Z)/Stocks_A/threadview?bn=27718&tid=230555&mid=230555

that's what I suspect. They can hide better that way and still get the negative results they expect. Some insurance guy with the help of his buddy crooks probably put the letter together and the simple minded congress persons jumped all over it without looking. That's the kind of people who seem to always get elected...and who elects them??...you got it.
========================================================
I faxed yesterday’s letter to Waxman and Kohl. Today I called the offices of the other two representatives, DeGette and Pallone and gave it to them. I am faxing this to all four of them plus Jo Bonner today plus The Senate Special Committee on Aging, to rub it in:
--------
What an embarrassment! The congress getting played like a fiddle by hedge funds. The congress members should be fighting for Main Street not Wall Street. This “Avanir” baby has been learning to crawl for 10 years and is just getting ready to stand up and walk and Congress punches it in the face to support some hedge fund boss who is out to lose 100’s of millions of dollars and is obviously using his connections to pull strings in the Congress to investigate Avanir just so the stock price drops so these crooks can cover their short position at a more favorable price. Wake and smell the roses Congress. We’ve had enough of Wall Street’s manipulation. Fight for Main Street for a chance for God’s sake.

Out of all these pharmas big and small, isn’t it fishy that congress picks on a small company which has one of the highest short ratios in this sector. Wake up Congress. Instead of investigating Avanir investigate the hedge fund manager(s) who gave your this frivolous case and prompted you to do this bogus investigation. What a waste of tax payer money.
----------
First letter:

By fax:

Concerning your investigation of Avanir, I am afraid you may have fallen for the lobbying of big hedge funds who have shorted over 30 million shares of Avanir. The timing of the announcement perfectly coincides with a rally which would have caused these shorts 100's of millions of dollars in losses but instead they got a much needed relief. The allegation is utterly bogus and frivolous. Knowing what good men you are, I suspect the short sellers have tricked you into this.

I can assure you, this company has been working very hard, in the most difficult condition and with huge expenses, to bring their drug to market to help people who have no other treatment.

The only parties benefiting from your investigation are hedge funds who have short sold a quarter of the stock's float. Please be on the side of Main Street not Wall Street and drop your absolutely ridiculous investigation of Avanir.

Thank you

========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=229151&mid=229286&tof=37&rt=1&frt=2&off=1

Yes It is amazing... How powerful the shorts must be, to make a senate committee enquire about a small bio tech company.. CROOKS RULE!!
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=229252&mid=229285&tof=31&frt=2

This is the e-mail I sent:

Dear Mr. Waxman,

I am a shareholder of Avanir Pharmaceuticals. I have held and accumulated their shares over the past 10 years.

You see, my stock in Avanir was originally going to be the cornerstone for my college account for my children. In 2002 I learned of what was to become Nuedexta. It was a combination of two older drugs. Avanir had combined 30 mg of Dextromethorphan with 30 mg of Quinidine. The drug was very effective at controlling emotional lability, where people cannot control whether they laughed or cried. The condition is suffered by MS, ALS, stroke and traumatic brain injury patients, among others. The efficacy of the combination was off the charts.

The company made a new drug application with the FDA. On Halloween, 2006, the FDA made its decision: the drug was “approvable”, but not approved. The FDA said there was a potential risk to heart patients because of the Quinidine component-specifically, it made the QTc interval too high. So the FDA told Avanir to go back to the drawing board. So Avanir did. They did a whole new Phase III trial of the drug, under two formulations: 30 mg Dex and 10 mg Q, and 20/10. Four long years later (during which I got to accumulate shares at 45 cents apiece), the drug was approved. Now, after all this time, it’s on the market. Patients with these terrible diseases are getting relief from this distressing condition. Sales are ramping up. Finally, I am making money on my investment. Of course one of my daughters is now out of college, but that’s the way it goes in the investment world sometimes.

Now, your office in its wisdom decides this drug is frankly, a ripoff. It’s a combination of two generic drugs! How hard can that be? How expensive can that be?

Many great ideas look simple in hindsight. This new medicine was the product of YEARS of trials. Now that the drug is finally paying off for investors, our government, the same one that made Avanir wait an additional 4 years and spend millions on additional research to market this drug, is now saying they’re making too much money.

This inquiry you’ve initiated is a waste of time and taxpayer money. I seriously wonder about its motivation. If you want to call me about this, I’ve got my number listed below.


Sarge

Sentiment : Buy
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=229589&mid=229589&tof=27&frt=2

It was right at the point of breakout (see volume by price - and some powerful people with deep pockets were about to lose big.

So they called their friendly crook in congress and HURRIEDLY scrapped together this abortion of a letter, adding the other pharma to it as a smokescreen.

It can't have taken more than 2 hours to scrape together the crappy 'research', from S.A. etc. and to make a couple of meaningless bullet point questions - to which the answers are ALREADY mainly in the public domain anyhow.

What a crooked political environment you guys have over there.

And all they could do was precipitate a mere 7% retrace after a run up from 3.60. On anemic volume./

What a crock.
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=229612&mid=229612&tof=4&frt=2

The inquiry you’ve initiated as stated in your letter made public is based on erroneous information.

There is adequate public information to answer the questions you raised. The pointed focus on a small company, among one of the most highly shorted, that has played by the rules over many years and that is in a hard earned roll out phase of a large investment and meaningful accomplishment should be explained to the SEC or an investigative reporter willing to look at the facts and motivations. Hopefully an inquiry will illuminate your interest or ignorance in participating in attempting to sabotage an innovative company. If you waste the public trust on this you’ll prove no wrongdoing other than your own.

Focusing on this company with incorrect statements made public is unethical and appears intended to manipulate the stock price.
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=229627&mid=229627&tof=31&frt=2

I sent the following letter to my congressman, for what it's worth.

Colin
---------
I am writing in regard to Avanir Pharmaceuticals' new drug, Neudexta.

First, my disclosure: I am a shareholder of Avanir. My stake is not large, but I have been through the ups and downs, including the FDA rejection, and thought that with the recent approval and the commencement of marketing I was finally seeing the light at the end of the tunnel.

Now Senator Kohl and Representatives Waxman, Pallone, and DeGette have requested information from Avanir Pharmaceuticals about the pricing of their newly approved drug, Neudexta, implying that their price is exorbitant. I find this extremely inappropriate.

Pharmaceutical companies spend billions of dollars developing drugs, navigating an arduous (and often ludicrous) FDA approval system, and marketing the drugs. This will not happen if they can't make a profit from their labors. Is congress willing to subsidize all pharmaceutical research? If not, they need to stay out of the pricing game.

Yes, the ingredients are cheap. The process to get them to those who need them is not. Avanir must recoup years of enormous losses and generate sufficient income to develop future drugs, including all of those attempts that will fail. Is there a serious effort underway to price drugs at the cost of their ingredients?

I understand and share the concern over high health costs, but it simply doesn't make sense to destroy the funding that produces new medicines. These companies get money in essentially two ways: selling stock and selling medicine. The former requires that the company be profitable, and the latter requires that companies price their products appropriately. That is, investors will not fund these companies if the companies can't make a profit, and the market will dictate an appropriate price without help from Congress. Forcing a low price hurts the company in both ways.

Finally, I note in passing that there are many more significant pharmaceutical companies with more expensive drugs that have been making huge profits for years. It makes me wonder why Avanir is the one under scrutiny. (I don’t believe those other companies should have their prices regulated by Congress, either.)

Please register my discontent with the committee. I recognize that I appear to have a bias (and probably do) since I invested in the company, but I believe in these principles regardless of my position with respect to the stock. That just happens to be how I came to know of the issue.

Thank you,
XXX
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=229647&mid=229669&tof=29&frt=2

And how about the money that will be expended by Avanir for future trials for pain and other uses? Where is that money going to come from? Congress? What a crew of idiots.
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=229845&mid=229845&tof=20&frt=2

Today Senator Kohl, Congresspersons Waxman, Pallone and DeGette were signatories on a letter addressed to Avanir Pharmaceuticals. In the letter, much of which was easily proven false, these individuals in essence proposed that they were better qualified to price Avanir's new FDA approved drug than the management team who developed it.

The most obvious question for a news agency would be....and I sincerely hope you press them until you get a real answer....WHO wrote/created this letter? Since a great deal of it is false no one is going to want to take credit. But if they won't take credit then why would they allow they're signature under a document that is both false and anathema to both the spirit and function of the free enterprise system?

Is this the proof we've been waiting for that the Democratic Party does not believe in Capitalism? If they propose to go after one small company that has worked tirelessly for many years, spent millions of dollars in development costs, created many new jobs to market the product, then who is next. Will they go after Borden for excessive milk prices? How about General Mills for cereal prices? Are they going to suggest wage controls next?

Beyond the issue of being dumb enough to sign a document they didn't understand, a larger question would be, who had enough influence with these members of congress to get them to use power and influence to harm a fledgling company with a superior product? Could it be a hedge fund that has taken a short position in this stock? The same hedge funds that marched the US economy into near oblivion? Is that who these congressmen and women are in bed with? And if they didn't have a personal interest in the stock manipulation that was obviously going on, how could they be dumb enough to be used in this manner.

This could be a tremendous story to develop. Roast those people because they are either incredibly gullible or complicit in a clear case of stock manipulation. You might also note that the stock took a late day tumble yesterday so it wouldn't be too difficult to surmise someone was aware that letter would be issued. It's the most obvious case of crooked or stupid politicians you could ever ask to investigate.

The last thing the American public wants is Congress trying to set prices. And they will be incensed by the stock manipulation value of this story. Also, when they try to weasle out of the corner by saying the drug is a combination of two common components you might be ready with examples of any number of patented items made up of common components. It's the vision and insight to combine them into something new and valuable that makes them patentable.

Thanks for listening. And when your station gets the Pulitzer Prize for Journalism I hope you remember me.
========================================================
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=27718&tid=230813&mid=230813&tof=20&frt=2

Sen. Herb Kohl and Reps. Henry Waxman, Frank Pallone and Diana DeGette, all Democrats, want Avanir to explain why, if those drug components were so inexpensive (they say, about $20 a month), the price of Nuedexta is $600. Adam Feuerstein at TheStreet.com actually says the price is more like $4,800 to $5,800 a year, depending on discounts, or between $400 and $483 a month.

I for one am appalled that Avanir’s Nuedexta product is being targeted by some of our members of congress. Not only is the letter poorly written, some of the information in it is completely false. Notably this sentence – “Doctors and patients were understandably upset at the news that this drug, once available for about $20, was now going to be $600. ” This drug was NEVER AVAILABLE FOR 20$.

What entity is behind this near slander? What is the motivation here for targeting a newly approved FDA drug that has enormous potential for improve quality of life?

Millions of dollars have been put into the clinical development and safety trials for this drug. This drug has so much to offer for patients with PBA, diabetes, ALS, Alzheimers, etc. Later this year Avanir plans to initiate phase two trials for a MS pain indication and more indications will surely come. The price of development and research costs money and Avanir has the right to correctly price their new drug according to what the market will pay.
========================================================