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Active Biotech reported for economic crime

The Lund-based pharmaceutical company has been reported to the Swedish Economic Crime Authority. Active Biotech is accused to have to misinformed their investors.

Allegedly, the firm was aware of the that the MS drug Nerventra should have been stopped but concealed it. On January 25, the company share went down dramatically on the stock market. Before the trade stopped the value had gone down by 45 percent. The reason was that the European pharmaceutical authority CHMP had recommended against marketing authorization for Nerventra for relapsing-remitting multiple sclerosis. The drug can thus not be sold in Europe. The reason that CHMP didn’t approve of Nerventra was tests showing that the risks with the drug were unacceptable in relation to its modest effects on the disease. There were for example an increased risk of cancer and deformations of newborn babies. Active Biotech did reportedly not inform about this in their external communication.

The complaint to the Swedish Economic Crime Authority comes from the organization INDEIN (Investigation Development for Investors). As reported in the web edition of the Swedish newspaper Sydsvenskan Active Biotech had according to the complaint deluded the market by remaining silent about the risks with the drug and in their communication claimed that it would be a successful business.

Whether a preliminary investigation will be initiated is to be decided within a week. To Sydsvenskan, Active Biotech CEO Tomas Leanderson had said that there is no basis for the accusations. Also the CHMP decision has been appealed.