Shares Of Biotech Firm At Center Of Congressional Ethics Uproar Plummet
The controversy over the Australian company Innate Immunotherapeutics entangled now-Health and Human Services Secretary Tom Price and Rep. Chris Collins.
House Republicans Backed This Biotech — And Lost Big
For years, Rep. Chris Collins has been an evangelist for Innate Immunotherapeutics, talking up the small Australian biotech company and enticing friends and congressional colleagues to buy its shares. They might now regret listening. Innate’s lead drug, an investigational treatment for multiple sclerosis, failed in a 93-patient trial, demonstrating no benefit over placebo on an array of measures. And Innate’s share price, propped up by the promise of its sole asset, promptly fell by more than 90 percent on Tuesday morning, to 4 cents a share. (Garde, 6/27)
Rep. Collins Loses $17 Million In Biotech Stock
Collins’ relationship with the company has raised eyebrows in recent months. And the Office of Congressional Ethics is currently investigating whether Collins engaged in insider trading. The longtime President Donald Trump supporter allegedly tipped off a number of lawmakers and Buffalo-area leaders to invest in the company, which sold Collins' political acquaintances discounted shares that soared after their investments. (Bade, 6/27)
Lawmaker Loses $17M On Pharma Stock Pitched To Colleagues
A Republican congressman lost close to $17 million on Tuesday when stock in an Australian pharmaceutical company he allegedly promoted to other lawmakers plunged to pennies per share. Shares of Innate Immunotherapeutics fell more than 90 percent in Sydney after a multiple sclerosis drug being tested by the pharma company showed no signs of working. (Lane and Wong, 6/27)