Originally published September 23 2005
Drug maker charged over misleading claims
by Mike Adams, the Health Ranger, NaturalNews Editor
The U.S. Securities and Exchange Commission has charged the former chief executive of Transkaryotic Therapies Inc. with securities fraud for allegedly making misleading claims about its Replagal, a drug designed to treat a rare genetic disorder called Fabry's disease.
The U.S. Securities and Exchange Commission last week charged the former chief executive of Transkaryotic Therapies Inc. with securities fraud for allegedly making misleading statements about the company's Replagal drug.
The statements by Richard B. Selden kept the Cambridge company's stock artificially high and allowed the Wellesley resident to avoid a $1.64 million loss when he sold 90,000 shares between May 2001 and February 2002, the SEC charged in a civil complaint filed in federal court.
Replagal was designed to treat those who suffer from Fabry's disease, a rare genetic disorder.
According to the civil complaint, Selden and Transkaryotic made positive statements between October 2000 and October 2002 about the drug's clinical benefits and its chances of receiving Food and Drug Administration approval.
Meanwhile, Selden knew, but did not disclose, negative information about the clinical trial, including that the FDA considered it a failed study and recommended additional trials, the SEC alleges.
When Transkaryotic finally disclosed negative information about the FDA application on Oct. 2, 2002, the company's stock dropped more than $20 a share to $12.75 the next day.
The SEC is seeking Selden's alleged ill-gotten gains plus interest, civil penalties, and an order barring him from serving as an officer or a director of a public company.
Transkaryotic shareholders approved its acquisition by Shire Pharmaceuticals Group of England for $1.6 billion in July.
All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing LLC takes sole responsibility for all content. Truth Publishing sells no hard products and earns no money from the recommendation of products. NaturalNews.com is presented for educational and commentary purposes only and should not be construed as professional advice from any licensed practitioner. Truth Publishing assumes no responsibility for the use or misuse of this material. For the full terms of usage of this material, visit www.NaturalNews.com/terms.shtml