GNFTF - Expected Value Investing:  The Case Against Galmed

In June, Galmed (NASDAQ: GLMD) announced data from its Phase 2b trial evaluating its lead drug candidate Aramchol's ability to reduce liver fat in patients with NASH fibrosis. Though the drug failed its primary endpoint, it did demonstrate a moderate ability to reduce liver fat, improve NASH fibrosis, and resolve NASH - as such, Galmed's management is confident that the drug will be able to produce strong data in a Phase 3 trial with an FDA-approvable endpoint.

Galmed announced its data readout before trading opened on June 12, and immediately upon market open,