What All Happened With Chris Collins And Innate Immunotherapeutics

Formerly known as Virionyx Corporation Limited, the Innate Immunotherapeutics Limited is a biopharmaceutical company which is currently headed in Sydney, Australia. In December 2005, Mr. Simon Wilkinson who was the CEO of Innate Immunotherapeutics at that time met Congressman Chris Collins in New York as Mr. Wilkinson was in desperate need US$5 million to keep the company running.

Mr. Collins knew about the Wilkinson’s company since the 1990s and he offered his help to Mr. Collins and asked him to come to Buffalo, on the shore of Lake Erie to meet possible investors. Within a few days after the meeting, Mr. Simon Wilkinson successfully raised the funds from Mr. Collins’ wealthy neighbors and friends.

In the year 2010, the company changed its name to Innate Immunotherapeutics and decided to focus on its new lead drug, MIS416 that could have therapeutic value in the treatment of MS.Â

Initially, Mr. Collins was seen as a true believer of Innate's key drug, MIS416 and he was very positive about the possibility of finding a cure for multiple sclerosis. Due to his influence and enthusiasm for Innate, five other congressmen ended up owning the stocks of Mr. Wilkinson’s company. On several occasions, Mr. Collins personally injected cash into the company’s business to stabilize the company.

In the year 2017, the company was running a 93-person clinical trial across five sites. The trial was trying to prove that MIS416 had therapeutic value in the treatment of MS. However, in an email to Mr. Collins and other directors, Mr. Wilkinson disclosed that the results of the trials indicate clinical failure.

Mr. Collins did not anticipate these outcomes and he was shocked by this news. When Mr. Collins received the news about the clinical failures, at that time he was attending an official event and as per the US Securities and Exchange Commission (SEC), after receiving the news Mr. Collins immediately contacted his son Cameron Collins and they spoke several times over that weekend. On 26 June 2017, the company made an announcement regarding the negative results of its trial and with this announcement the company also came out of a two-day trading halt. The next day, the stock of the company declines by over 90 percent.

The SEC claims that Mr. Collins’s son and his girlfriend, her mother and her father Mr. Zarsky sold 1.78 million of the company’s shares in the prior four days period. Further. In the Federal court, the prosecutors allege that Mr. Collins' tip breached his fiduciary duty as he was aware that after learning about the news of clinical failures, his son will trade the shares. In May 2018, Mr. Collins left the company’s board, along with most of his peers including chairman Michael Quinn.

Mr. Collins, his son and Zarsky all pleaded not guilty when they were prosecuted in federal court on 8 August 2018.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.

Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.