Luke Timmerman at Xconomy Reports on SEC Charges Against a Seattle Genetics Company. The comonay has a breakthrough new technology that chemically links antibodies to anticancer drugs.
Seattle Genetics had some great news for shareholders and cancer patients last September, … when the company issued a press release saying its “empowered antibody” for patients with relapsed forms of Hodgkin’s disease was able to shrink tumors by 50 percent or more for a startling 75 percent of the 102 patients who enrolled in a pivotal trial. That success, and a second, even more promising trial of the drug for another form of lymphoma that was later presented at a medical meeting, caused Seattle Genetics stock to climb more than 60 percent last year.
and now federal securities regulators say it was too good for one of the company’s managers and a member of his family.
The Securities and Exchange Commission has accused Zizhong (James) Fan, an employee of Seattle Genetics, of tipping off his family member Zishen (Brandon) Fan in advance about positive clinical trial results that were eventually made public in September. The SEC has obtained a court order to freeze a bank and brokerage account which it says contains $800,000 in illegal profits, according to an SEC statement. Here’s the full complaint from the SEC, filed in the U.S. District Court for Western Washington.