Prothena Shares Drop as Short Seller Muddy Waters Attacks
- Drugmaker slides nearly 10%, steepest decline since February
- Muddy Waters founder says Prothena’s lead drug not effective
Carson Block, chief investment officer and founder at Muddy Waters Capital, explains why he shorted the stock of Prothena Corp. Plc. He speaks with Bloomberg's Julia Chatterley on 'Bloomberg Markets.' (Source: Bloomberg)
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Prothena Corp. dropped after short seller Muddy Waters Capital said that the drugmaker’s lead compound doesn’t help patients much more than existing therapies.
“Our view is that at least what’s been publicly released does not show that it’s efficacious,” Carson Block, the fund’s founder, said of Prothena’s lead experimental drug in an interview on Bloomberg TV. Early results showing that patients improved could be attributed to “previous therapies,” he said.