Epix to Conduct Review of Stock Options
Tuesday December 12, 10:47 am ET
Epix Pharmaceuticals Plans to Review Past Stock Option Practices During and Before 2002
LEXINGTON, Mass. (AP) -- Biopharmaceutical company Epix Pharmaceuticals Inc. on Tuesday said it plans to conduct a review of past stock options practices.
Epix Pharmaceuticals formed a special committee to perform the review and hired outside legal counsel to assist in the process.
A media inquiry on Dec. 8 spurred the review, the company said. The inquiry included assertions related to the exercise of stock options during and prior to 2002 by a former Epix Pharmaceuticals chief executive who left in 2005, the company said.
According to a regulatory filing, Michael Webb stepped down as chief executive of the Epix Pharmaceuticals on Sept. 14, 2005, after 11 years with the company.
As of Monday, the stock options practice of 103 companies were under scrutiny by the Securities and Exchange Commission or the Department of Justice, according to an Associated Press tally. Another 87 other companies not currently facing a federal probe have launched or completed internal reviews into stock options practices.
At least 59 senior executives or directors, including 18 chief executives, 12 chief financial officers and 11 general counsels have left at 32 companies due to stock option investigations.
Earlier Tuesday Epix shares jumped after the company announced a deal with U.K. drug maker GlaxoSmithKline PLC to develop drugs based on protein action in cells, which could be used against a variety of diseases. It also includes further development of Epix's experimental treatment for Alzheimer's disease.
Epix stands to make $1.2 billion in milestone payments and double-digit royalties.
Shares of Epix Pharmaceuticals hit a new 52-week high of $8.75 before sliding back to $7.87, up $2.35,or 42.6 percent, the Nasdaq. |
