Hedge fund investor Sahm Adrangi‘s is what is known as an activist or value investor, but his activism didn’t start on the stock market. The Iranian born Adrangi, who moved to the United States at the age of 5, initially joined protest groups while attending Yale University from 1999 to 2003. He became disillusioned by their tactics and insistence that he support causes that he didn’t agree with and grew to become more conservative in his views and discovered new ways to “fight the man”. Initially wanting to be a journalist, he wrote and edited the Yale Daily News but ended his college career by earning a Bachelor of Arts in Economics.
The activist investor who is the Chief Investment Officer and founder of Kerrisdale Capital Management LLC. has a passion and talent for bringing to light shady business practices and even outright fraud, and he makes a profit from it.
Sahm Adrangi has recently been making headlines with the short selling attacks Sahm Adrangi has been making on biotech companies that were developing drugs that he foresaw as doomed to failure based on the shoddy Phase I and II research results. The two drugs included the prostate cancer vaccine ProstVac that was being developed by Bavarian Nordic and Sage Therapeutic’s failed brexanolone designed to treat a type of epilepsy known as SRSE. He had predicted the failure of these drugs more than a year before the Phase III results were released, both showing no verifiable effect than a sugar pill but with more potential side effects.
Now Sahm Adrangi has a new drug in his crosshairs and investors are taking notice. This drug, which is still in research phases but already showing lackluster results, is known only as NEOD001 and is being developed to treat AL amyloidosis by the company Prothena. Sahm Adrangi insists that the results shown in initial testing could be produced from natural variances in the progression of the disease itself and the numbers are being skewed and misrepresented to mislead investors and hopeful patients and doctors. While nobody wants a medication to fail, bringing a useless one to market could have even deadlier side effects. Prothena’s stock dropped 8% after Adrangi made his research public. See This Page for related information.