Chiron Falls Anew on Flu Fiasco

The company is now reportedly being investigated by U.S. securities regulators.
Publish date:

Updated from 3:09 p.m. EDT


(CHIR) - Get Report

said Wednesday that it has become the subject of an informal

Securities and Exchange Commission

investigation regarding the company's flu shot fiasco. On Tuesday, Chiron said it had received a federal grand jury subpoena regarding the same matter.

Securities regulators are looking into what the company could have and should have told investors about the problems at its vaccine manufacturing plant that prompted U.K. regulators to suspend the plant's license and cause the near halving of available flu shots in the U.S. for the current flu season.

Chiron said it "intends to fully cooperate" with the SEC request for "certain documents and materials" related to the Fluvirin vaccine, according a statement Chiron filed with the SEC Wednesday.

Shares fell Wednesday another $1.87, or 5.5%, to $31.87. The stock is off about 30% since Chiron made its stunning announcement Oct. 5.

On Tuesday, Chiron said it had received a subpoena from a panel convened by the U.S. attorney for southern New York.

Chiron, based in Emeryville, Calif., said last week that it would not produce any vaccine for the current flu season because British health regulators had suspended the manufacturing license for the company's plant in Liverpool, England.

The decision essentially cut the U.S. flu vaccine supply in half because Chiron had been expected to produce 46 million to 48 million doses.

Chiron provided few details on the SEC request or the subpoena that requested "certain documents and materials" relating to Fluvirin. The company said it "intends to fully cooperate" with the U.S. attorney's office.