Quite the soap opera now:
>>NEW YORK, Aug 14 (Reuters) - ImClone Systems Inc. (NasdaqNM:IMCL - News) said on Wednesday it filed suit against its former chief executive, Samuel Waksal, claiming Waksal ordered the destruction of documents that may be important to a government investigation.
ImClone, which filed suit in New York State Supreme Court on Wednesday, said it is demanding Waksal repay $7 million that was paid in severance when he resigned in May amid accusations he tipped off relatives to bad news about the company's experimental cancer drug, Erbitux, before the news was released to the public.
ImClone, whose current chief executive is Harlan Waksal, Samuel's brother, is also demanding Samuel repay funds advanced by the company to cover his legal fees and expenses. The company is also seeking repayment of certain amounts paid under Samuel Waksal's previous employment agreement.
On Aug. 7, a federal grand jury indicted Samuel Waksal, 54, on securities and bank fraud charges. Waksal has pleaded not guilty to the charges.
LOSS WIDENS IN SECOND QUARTER
The company said its second-quarter loss widened as the severance payment to Waksal, together with higher research and development costs, offset higher payments from co-developers of its cancer drug.
The company said its net loss widened to $43.1 million, or 59 cents a share, from $29.5 million, or 44 cents, a year ago.
Revenue rose to $11.6 million from $3.9 million a year ago on increased milestone and licensing payments from partners Bristol-Myers Squibb Co. (NYSE:BMY - News) and Merck KGaA (Frankfurt:MRCG.F - News) for the development of ImClone's cancer drug Erbitux.
Analysts had on average expected the New York-based biotechnology company to lose 41 cents a share, according to Thomson Financial First Call.<<
Cheers, Tuck |
