Author: Eva Pastor
Date: 09-29-09 14:16
Source: Reuters
URL: http://www.reuters.com/article/rbssHealthcareNews/idUSBNG47956220090928
Date published: September 28th 2009
Sequenom fires CEO after Down Syndrome test probe
Mon Sep 28, 2009 7:16pm EDT
NEW YORK, Sept 28 (Reuters) - Sequenom Inc (SQNM.O: Quote, Profile, Research, Stock Buzz) said it has removed almost its entire top management team as a result of a scandal involving mishandling of research and critical data on its prenatal Down syndrome test.
The genetic analysis products maker's board said it fired president and CEO Harry Stylli and research chief Elizabeth Dragon and obtained the resignation of Chief Financial Officer Paul Hawran and one other unidentified officer.
Three other employees were also dismissed following completion of an independent investigation by a committee of independent directors.
The company's shares sank more than 43 percent on the news.
In April, Sequenom delayed the launch of the SEQureDx test, citing mishandling of research and development test data by employees and said it had initiated an independent investigation into the matter. [ID:nBNG440128]
"The company failed to put in place adequate protocols and controls for the conduct of studies in the Trisomy 21 (Down syndrome) program," Sequenom said in a statement announcing the changes at the top.
"Certain of the company's employees also failed to provide adequate supervision," the statement said, adding that, as a result, test data and clinical results included "inadequately substantiated claims, inconsistencies and errors."
The San Diego-based company is already facing a U.S. Securities and Exchange Commission investigation and a series of investor lawsuits over the publication of misleading data.
The company repeated that it is no longer relying on any of the previously announced study data for its prenatal Down syndrome test and said the public should not rely on the data reported in prior news releases or other pubic statements.
Board Chairman Harry Hixson has been appointed as interim CEO, the company said.
Sequenom shares fell to $3.20 in after market trading from their Nasdaq close at $5.69.
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