Hollis-Eden shares plunge on HHS drug rejection

The Department of Health and Human Services has rejected Hollis-Eden's Neumune for radiation sickness, sending its stock price into a tailspin. Shares were down 30 percent on HHS' decision that Neumune was "technically unacceptable." Researchers for the company say that Neumune has lowered deaths among primates and is safe in humans.

"Given the nature and stage of our communications with HHS regarding our original ARS proposal and subsequent revisions, this decision by HHS to exclude our proposal and cancel the RFP is shocking and difficult to understand," said Richard B. Hollis, Hollis-Eden chairman and chief executive, in a statement.

- see this release
- read the AP report on the fallout

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