US company Biogen, Élan's joint venture partner in the multiple sclerosis drug Tysabri, will now be the subject of a formal investigation after some of its directors made huge windfalls by selling shares before the drug was suspended.
Biogen said today that security regulators were formally investigating whether the company violated security laws.
The company's executive vice-president, Thomas Bucknum, resigned last month after it was revealed he made a profit of almost $2 million selling shares the same day the company admitted there were serious problems on Tysabri.
As soon as the revelations about the drug hit the market, Biogen's shares tumbled 43%.
At the same time, Élan's share price fell 70%. However, it has denied that its directors sold shares prior to the disclosures regarding Tysabri.
