The market is always right - or... at least perhaps "on average" always right. In the case of TBRA (Tobira Therapeutics), the market obviously had the stock wrong.

Background: In July Tobira Therapeutics presented less than stellar results (http://ir.tobiratx.com/releasedetail.cfm?ReleaseID=980924) on their non-alcoholic steatohepatitis (NASH) drug - the primary endpoint was not met in a phase 2B trial. The stock plummeted as a result. However, there was an interesting statistically significant improvement in an important - but non-primary endpoint!

As we can see today, big pharma clearly valued that finding in spite of the primary endpoint not being met. Thus, today the stock is up 700% in a deal involving contingent value rights (CVR), very much the same model as DM suggested some time ago.

I am not saying that the same thing is going to happen with Resverlogix, but I do see some similarities.

Best regards,

BKC