Innate Immunotherapeutics Ltd. (INNMF) of Australia is the biopharmaceutical company at the center of the insider trading charges leveled against Rep. Chris Collins, R-N.Y.
What does the company do? It specializes in immune response modifiers that can be used to treat various infectious diseases and even some types of cancer. The company's one proprietary drug, MIS416, which was targeted to treat multiple sclerosis, failed a Phase II trial.
Collins was the largest shareholder of Innate after he purchased 4 million shares in 2016. In 2017, after allegedly receiving an email from Innate's CEO that MIS416 had failed in clinical trials, Collins informed his son, who also owned shares of the company. Cameron Collins then sold his Innate shares and avoided a $570,000 loss.
"Christopher Collins responded to the email and then approximately 15 seconds later began attempting to reach his son, Cameron Collins. After exchanging several missed calls, Christopher Collins and Cameron Collins connected and spoke for six minutes," said a Securities and Exchange Commission filing. "Over the next two trading days, between the opening of the market on Friday, June 23, and the close of the market on Monday, June 26, and while the clinical trial results were still nonpublic, Cameron Collins sold a total of nearly 1.4 million Innate shares based on material, nonpublic information he received from Christopher Collins. Cameron and Christopher Collins spoke by telephone at least nine times during that same time period."
Shares of Innate have fallen 53% over the past year. Innate has a market cap of $10 billion. The stock trades for around 25 cents.