Clal, Evotec fall on DiaPep277 revelations

Clal Biotechnology Industries Ltd. (Tel Aviv:CBI) plummeted NIS366.80 (46%) to NIS440 on Tuesday, a day after Hyperion Therapeutics Inc. (NASDAQ:HPTX) said it is terminating diabetes candidate DiaPep277 following alleged research misconduct.

Hyperion gained the product through its June acquisition of Andromeda Biotech Ltd. from Clal, which was eligible for up to $550 million in milestones plus tiered royalties on DiaPep277 under the deal. But on Monday, Hyperion said it would halt the program after finding what it called research misconduct by some Andromeda employees (see BioCentury Extra, Sept. 8). ...