Richard Selden, the former CEO of Transkaryotic Therapies, has agreed to pay more than $1.1 million to settle claims he misled investors and improperly pumped up the value of the company's stock by inflating the potential of Replagal. The SEC had accused Selden of covering up the fact that the drug had failed a trial for Fabry's disease and knew regulators were likely to reject an application for the drug. Transkaryotic didn't tell investors that it knew it would have to undertake more clinical trial work before Selden sold 90,000 shares of company stock. The SEC says Selden gained $1.6 million in profits. He was fired in early 2003 and Transkaryotic was sold to Shire in 2005 for $1.6 billion.
- read the story [1] from the Boston Globe
Related Articles:
Transkaryotic touts trial results [2]
Shareholders give thumbs-up to Transkaryotic takeover [3]
Links:
[1] http://www.boston.com/business/articles/2008/07/11/ex_biotech_ceo_to_pay_sec_more_than_11m/
[2] http://www.fiercebiotech.com/story/transkaryotic-touts-trial-results/2005-06-20
[3] http://www.fiercebiotech.com/story/shareholders-give-thumbs-up-to-disputed-transkaryotic-takeover/2005-07-27