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Akari places CEO on administrative leave while board investigates research report on Coversin; shares down 18% premarket

Published 05/12/2017, 08:33 AM
© Reuters.  Akari places CEO on administrative leave while board investigates research report on Coversin; shares down 18% premarket
AKTX
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  • Akari Therapeutics (NASDAQ:AKTX) slumps 18% premarket on average volume in response to its announcement that it has placed CEO Dr. Gur Roshwalk on administrative leave while a special committee of the board investigates the potential involvement of company employees with a report published last month by Edison Investment Research which showed lead product candidate Coversin was inferior to Alexion's Soliris (eculizumab) in a mid-stage paroxysmal nocturnal hemoglobinuria (PNH) study.
  • In a statement issued today, Edison says the company signed off on the report as written and, an in-depth investigation notwithstanding, Akari has yet to provide evidence of any alleged inaccuracies despite multiple requests from Edison and its legal counsel.
  • Now read: Interim data not good for Capricor's lead product candidate in mid-stage heart study, focus shifts to DMD; job cuts planned; shares off 33% premarket


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