Hanmi Pharmaceutical raided over insider trading suspicions
pharmafile | October 17, 2016 | News story | Sales and Marketing |Â Â Boehringer Ingelheim, Genentech, Hanmi Pharmaceutical, south koreaÂ
At the end of September, we reported on a busy 24-hour for Hanmi Pharmaceutical, as they secured a deal with Genentech only to be hit the following morning with the news that Boehringer Ingelheim would terminate their contract to develop an advanced cancer treatment. The Genentech deal was released towards the end of the day on 29 September whilst the Boehringer deal collapse was announced at 9:28 am the following morning.
The two news stories caused the price of Hanmi Pharmaceutical to rise quickly on the positive news only to freefall after the collapse of the $733 deal with Boehringer Ingelheim. It meant that some investors were able to profit heavily from this quick fluctuation in price. During the 28 minutes up until the release of the Boehringer deal news, a record number of short selling took place before the news was made officially public. This has raised serious questions regarding how the news managed to leak and whether anyone at Hanmi Pharmaceutical was possibly involved.
50 investigators arrived at the headquarters to confiscate computer hardware and internal documents that could reveal whether the news was released from inside the company.
“The company neither leaked confidential data nor delayed notifications of important news in a deliberate manner,” the company said in a statement. “We believe misunderstandings about the recent incident will be solved as the investigation progresses.”
“We are very sorry for causing concern to the people and our shareholders. We will actively cooperate with the investigation,” the statement, continued.
Ben Hargreaves
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