The London Stock Exchange censured the drug development company, British Biotech, after completing a 15 month investigation which concluded that the company had violated exchange rules. The exchange said British Biotech had failed to disclose information which could impact on its business and move its share prices between June 1997 and February 1998, after the European Medicines Evaluation Agency rejected an initial marketing application for Zacutex, its pancreatic drug. The exchange said the directors and some employees were allowed to deal in the company's shares while it possessed the unpublished information.
Lacking the power to fine British Biotech, an Exchange spokesman said it was taking the strongest action it could - short of delisting the shares. The company, which has repeatedly refused to acknowledge criticisms, said it disagreed with the exchange's findings but would not contest them. A fortnight ago, the US Securities and Exchange Commission found the drug development company guilty of making 'materially misleading statements' about its cancer treatment.
SmithKline Beecham has denied market speculation about either a company-wide merger or a strategic alliance with Novartis, a Swiss pharmaceuticals group.
Sources and References
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Exchange censures British Biotech
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British Biotech censured by Stock Exchange
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No plan for SmithKline link with Novartis
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Sorry is still the hardest word
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