Asensioexposes!com offers accurate facts that disproves past criticism of the Manuel Asensio Reports. - Manuel Asensio Report: May 15, 2002 PolyMedica's feeble attempts at credibility exposed.

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Manuel Asensio Report: May 15, 2002 PolyMedica's feeble attempts at credibility exposed.

Manuel Asensio and Asensio & Company, Inc. ("Asensio") report that PolyMedica Corporation (NASDAQ: PLMD, Price: $39.38) recently claimed that the Securities and Exchange Commission ("SEC") has terminated its investigation of the company. The announcement contained a supporting quote by the "Chairman of the Oversight Committee." Today, PolyMedica issued a statement announcing the addition of two members to its Board of Directors. These announcements may lead investors to believe that PolyMedica’s management has changed and that it is making progress towards a settlement with the U.S. Department of Justice ("DOJ"). There is absolutely no evidence to support this belief. As is described below, the Oversight Chairman's statement is improper and highly questionable. Furthermore, one of PolyMedica's "additional" directors has invested in at least two penny-stock-promotions with two of Wall Street's most unscrupulous stock promoters. According to Manuel Asensio and Asensio, PolyMedica's other "additional" director had previously served on its board and is also a director of a yet another penny stock company.

Herbert Denton is the Chairman of PolyMedica's Oversight Committee. Chairman Denton’s April 8, 2002 statement concerning the DOJ's criminal investigation has led some investors to conclude that PolyMedica's Medicare problems can be resolved through a settlement that would not have a negative material effect on PolyMedica's financials or ongoing business. Manuel Asensio and Asensio believe that statement is baseless and constitutes inappropriate representations to investors, especially for an alleged independent director and the leader of a so-called "Oversight Committee." (Click here to read Asensio & Company, Inc.’s letter to Chairman Denton.)
Edward A. Burkhardt has been an "inside" shareholder of both Cytoclonal Pharmaceuticals, Inc., now called eXegenics Inc. (OTC: EXEG, Price: $0.86) and Cathayonline, Inc. (OTC: CTYO, Price: $0.015). Mr. Burkhardt registered shares for sale in both companies along with Joseph Giamanco, Bruce Meyers,Janssen Meyers Securities and William Rouhana. Joseph Giamanco was expelled from the AMEX and was exposed for his dealings with the criminally-organized Hemispherx Biopharma, Inc. (AMEX: HEB, Price $3.33). Bruce Meyers and the now defunct Janssen Meyers Securities have been sanctioned by the NASD. William Rouhana was the CEO of the bankrupt and highly questionable Winstar Communications, Inc. (OTC: WCIIQ, Price: $0.003) stock promotion.
Walter R. Maupay, Jr. served as a Director of PolyMedica from 1990 through March 1995. Mr. Maupay was president of Calgon Vestal Laboratories when Calgon entered into a distribution agreement with PolyMedica. Mr. Maupay was elected to the Board of Directors of Life Medical Sciences, Inc. (OTC: CHAI, Price: $0.13) on May 27, 1999. Life Medical Sciences is a bulletin board stock that has mostly traded below $1 since 1999.
Steven Lee, PolyMedica’s CEO, serves on the Board of two other public companies with Mr. Maupay and Mr. Burkhardt, separately.
The DOJ is currently conducting a criminal investigation of PolyMedica’s Medicare billings for the sale of blood glucose home testing supplies. The investigation commenced on or about June 24, 1999. It became a Federal criminal investigation in 2000. On August 21 and 22, 2001, pursuant to a Federal court order, the FBI conducted a search of PolyMedica’s facilities and the homes of two of its officers. This required that a U.S. Magistrate judge find probable cause of PolyMedica criminal conduct. There is absolutely no reason to believe that PolyMedica will not be criminally indicted.
Manuel Asensio and Asensio expect that tomorrow PolyMedica will announce net income per share, adjusted to exclude the net after tax effect of unusual legal expenses related to the criminal and civil DOJ investigations, of approximately $1.24 for the fourth quarter. Non-Medicare markets for same products do not allow PolyMedica’s 60%-plus gross margins. The planned long-delayed steep reduction in Medicare reimbursement rates for blood glucose home testing supplies will eliminate this government oversight. However, as stated earlier, Manuel Asensio and Asensio believe that PolyMedica’s criminal liabilities, even when conservatively discounted, greatly exceed its asset or ongoing value.

Manuel Asensio and Asensio believe PolyMedica’s results are not sustainable and that its stock is grossly overvalued. Furthermore, there exists sufficient evidence of PolyMedica’s serious failure to comply with Medicare regulations to warrant a Federal investigation. We believe PolyMedica’s stock is grossly overvalued.

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