Volume Spike Investor

We are seeing a rather large price reaction to the downside and a subsequent volume spike as a result of news from Altus Pharmaceuticals Inc. (NASDAQ: ALTU).  This stock is down sharply after mixed results in a cystic fibrosis Phase III trial in patients with pancreatic insufficiency.   The study met some of the endpoints, but there were hopes for better results that had been indicated and some results varied geographically between those in the U.S. and those outside the U.S.

As of 8:45 AM EST we are seeing shares trade down about 33% at $3.35 in pre-market trading on about 64,000 shares.  Average daily volume is generally 240,000 shares, which we should be close to by the market open or shortly after the open.

This is a 52-week trading low as the prior range was $3.65 to $14.30.  After the drop this morning, the market cap is now around $108 million.  While it has stock options, the only month and contract with 1,000 contracts in the open interest is the SEP08 $5.00 CALLS.

JON OGG

August 12, 2008