Correction of mistakes mentioned in Paurana Capital short report

Stephen Bogle, an incoming Masters of Financial Economics candidate at the University of Toronto publishing under ‘Paurana Capital’[1], has recently drafted a report on INmune Bio entitled ‘INmune Bio – The Tried-and-Untrue - On why we are short $INMB’.

Essentially, the report is based on wrong assumptions, wrong scientific understandings and an incomplete understanding of XPro’s mechanism of action. I want to emphasize, here, that XPro has been tested by external academia in multiple models of neurodegenerative diseases. The mechanism of action has been clearly established, and a comparison with other non-selective anti-inflammatory drugs is inherently flawed, as it neglects the abundant research on the opposite roles of soluble TNF and transmembrane TNF in the framework of neurodegenerative diseases. If one wants to ignore the role of neuroinflammation, then one goes against many of the top scientists. Paurana Capital also ignores FDA guidance on the appropriateness of rating scales for early AD. There are a number of smaller mistakes and inconsistencies in the report as well.

To correct those mistakes, I have drafted a reply to that note, which can be found here.

Paurana Capital Rebuttal.pdf

Download PDF • 4.14MB

The note focuses on XPro, not on INmune Bio’s CORDstrom asset or INKmune, although these are integral to the buy thesis for INmune Bio.

[1] Though appearances may indicate otherwise, Paurana Capital is not registered with regulatory bodies such as the U.S. Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA), which are typical for regulated Wall Street analysts. The disclaimer of the report reads, at the start: “This report has been prepared for educational purposes by members of a student-run investment research club. It is intended solely for informational and academic discussion and does not constitute financial, legal, tax, or investment advice.”