The CEO and chairman of
have stepped down, the company announced Tuesday.
Chief Executive Harlan Waksal and Chairman Robert Goldhammer quit in connection with a federal tax probe, the company announced. CFO Daniel Lynch was named interim CEO.
Securities regulators have been investigating why ImClose failed to pay taxes on stock options exercised by its former chief executive, Samuel Waksal, and other officers and directors.
"The Company's current difficulties led the independent members of the Board of Directors to conclude that a change in leadership was appropriate. The Company has commenced a search for a permanent Chief Executive Officer. ImClone Systems will continue to benefit from Harlan Waksal's scientific leadership in his new role as Chief Scientific Officer," a company statement said.
Samuel Waksal, brother of Harlan, in October pleaded guilty to bank fraud, securities fraud, conspiracy to obstruct justice and perjury in an insider trading scandal that has also ensnared Martha Stewart.
ImClone's woes began in December 2001, when the Food and Drug Administration announced it wouldn't accept an application for the cancer drug Erbitux.
Shares of ImClone closed Tuesday at $18.63, up 79 cents, or 4.43%.