Mercedes announces new recall, Sony (SNE) attack blamed on North Korea and ImmunoGen (IMGN) shares tank after disappointing drug results

Bourbon & Bayonets / Friday, December 19th, 2014

Mercedes-Benz announced that they would be placing a recall on group of vans that were sold in the United States. The company said that they would be recalling a total of 8,279 Sprinter vans. The recall problem is that there is a chance the vehicle could have an oil leak, which would increase the risk of a fire or a stalling engine. The Sprinter van models affected are the 2500 and 3500 made between 2014 and 2015. The potential leak is located around the chain tensioner gasket. There have been no reports of accidents due to the problem yet. The company has already recalled a total of 4,871 Mercedes sedans and SUVs for the same problem.

Shares of Sony Corporation (SNE) were sinking over 2.8% after a rough week of being in the headlines. The company was at the center of a cyber attack three weeks ago, which caused a devastating blow to the company. There were private documents and emails released to the public. The attacks ultimately lead to the cancellation of a movie called “The Interview.” The film was a comedy that was circled around the assassination of North Korean lead Kim Jong Un. The hackers made threats to cinemas and moviegoers over the film’s showing. News was released today that U.S. authorities have said that North Korea was behind the attacks. The FBI said, “As a result of our investigation, and in close collaboration with other U.S. government departments and agencies, the FBI now has enough information to conclude that the North Korean government is responsible for these actions.” They continued to say “North Korea’s actions were intended to inflict significant harm on a U.S. business and suppress the right of American citizens to express themselves. Such acts of intimidation fall outside the bounds of acceptable state behavior.”

Shares of ImmunoGen, Inc. (IMGN) were tanking over 38% after the company reported disappointing breast cancer drug results. The company’s drug development partner Roche, said that their experimental drug Kadcyla, did not show the results they were expecting. They have been testing the drug on people diagnosed with cancer that have not yet received treatment. However, Kadcyla showed no significant improvement over those who received a different treatment. ImmunoGen’s CEO, Dan Junius, said that he is “disappointed by this unexpected outcome.” He also said, “Roche has a number of other trials underway with Kadcyla, and in 2015 expects data and – if positive – regulatory submission from its GATSBY study in gastric cancer.”

That’s all for today,

Warren Gates, Normandy Research 

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