Af­ter dis­ap­point­ing in­vestors, Sil­la­Jen gets in­to trou­ble with Ko­re­an pros­e­cu­tors on sus­pect­ed in­sid­er trad­ing

Sil­la­Jen in­vestors suf­fered a bad rout when the stock took a freefall ear­li­er this month in the wake of a no­tice that the com­pa­ny is aban­don­ing a Phase III for its on­colyt­ic virus, shav­ing more than $800 mil­lion off a mul­ti-bil­lion mar­ket cap in less than 2 hours.

Ex­ec­u­tives at the biotech, though, ap­par­ent­ly avoid­ed that loss by sell­ing stock ahead of the bad news — and Ko­re­an au­thor­i­ties have re­port­ed­ly raid­ed their of­fices for an ap­par­ent in­ves­ti­ga­tion.

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