Akari CEO abruptly resigns as a special committee moves a PhII patient success into the fail column
Akari Therapeutics CEO Gur Roshwalb is out.
The biotech reported after the market closed on Tuesday that Roshwalb had resigned — effective immediately — after the board decided to set up a special committee to examine the circumstances around an Edison Investment Research report on its rival therapy to Alexion’s Soliris that was suddenly retracted shortly after its release.
The report was retracted due to “material inaccuracies.”
Akari, which has been inundated with class action suits from investors in recent days, saw its share price $AKTX plunge another 17% in pre-market trading on Wednesday.
According to a statement from the company, their ad hoc review found that one of the five patients covered in an interim analysis of a mid-stage study of Coversin — reported as meeting the primary endpoint and then dropping out of the study due to an unrelated co-morbidity — did not in fact meet the primary endpoint for paroxysmal nocturnal haemoglobinuria, of PNH.
They’re also not finished. In their statement, Akari noted:
The Company expects to release additional results with respect to the four continuing patients in the Phase 2 PNH trial of Coversin in approximately four weeks.
Roshwalb had already been placed on administrative leave after the situation erupted, replaced at the helm by Executive Chairman Ray Prudo, who plans to stay on until a replacement is found for the job.