SEC calls out lit­tle Ther­a­peu­tic­sMD for its in­sid­er con­tacts with an­a­lysts to boost share price, then halt rout

Back in May 2017, fol­low­ing an FDA re­jec­tion, Ther­a­peu­tic­sMD saw its share price plum­met to the low­est lev­els in two years. The lit­tle Flori­da biotech even­tu­al­ly found its way back to the good side of reg­u­la­tors, scor­ing a cu­ri­ous OK a year lat­er for its ther­a­py pre­vent­ing vagi­nal pain dur­ing sex. But the SEC is now ac­cus­ing it of se­lec­tive­ly dis­clos­ing non­pub­lic in­for­ma­tion in at­tempts to ma­nip­u­late its stock.

In two in­stances in June and Ju­ly of 2017, Ther­a­peu­tic­sMD al­leged­ly vi­o­lat­ed the Reg­u­la­tion Fair Dis­clo­sure rule by shar­ing ma­te­r­i­al in­for­ma­tion with cer­tain sell-side an­a­lysts and not the pub­lic, re­sult­ing in a more fa­vor­able stock move than oth­er­wise would be ex­pect­ed.

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