Module 16 2022

02/09/2022

Responses to External Enquiries Outside enquiries - Information disclosed (e.g. to media, financial or securities analysts, share purchasers or sellers) can give rise to liability if incomplete or misleading

Risk violation of rules against selective disclosure

Inquiries should be referred to those familiar with all relevant information and applicable rules and issues

The Organisation for Professionals in Regulatory Affairs

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Telegraph

25 June 1999

British Biotech censured by Stock Exchange

THE Stock Exchange yesterday ruled that British Biotech, the struggling drug development company, misled investors and broke rules over directors' share dealing.

After a year-long investigation, the exchange issued a rare public censure against the company – the strongest sanction in its power, other than delisting. The exchange's quotations committee said it took a "most serious view of the company's failure", adding: "A company should ensure that any information which emanates from it is neither inaccurate nor misleading.“… …British Biotech's infringements took place between July 1997 and January last year, while investors were awaiting news on Zacutex, the company's potential treatment for pancreatitis. In June 1997, the company learnt that a preliminary report by the EMEA, Europe's drugs regulator, had concluded that Zacutex was "unapprovable" based on data so far submitted. However, British Biotech kept issuing press releases referring to the anticipated commercial launch of the drug. The exchange said the report should have been disclosed to shareholders and said subsequent releases gave a "misleading impression". It also ruled that the company should not have allowed executives to deal in shares during the period.

The Organisation for Professionals in Regulatory Affairs

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