Hyperion Calls Off DiaPep277 Program Following Misconduct By Andromeda Biotech

(RTTNews) - Hyperion Therapeutics, Inc. (HPTX) Monday said it is terminating the development of DiaPep277 for newly diagnosed Type 1 diabetes, in the light of an evidence, which revealed that certain employees of Andromeda Biotech, Ltd., which Hyperion bought in June 2014, conspired with a third-party biostatistics firm in Israel to improperly receive un-blinded DIA-AID 1 trial data and to use it for manipulating the analyses to obtain a favorable result. Additional evidence show that the biostatistics firm and certain Andromeda employees continued the improper practice of sharing and examining un-blinded data from the ongoing DIA-AID 2 trial.

As a result, Hyperion has suspended the wrongdoers and is continuing its probe for exploring its legal options. Hyperion employees were however not involved in any of the improper conduct.

The last patient visit in the DIA-AID 2 trial is expected to occur in the fourth quarter of 2014 and the company expects to record a non-cash impairment charge in the range of $25 million - $55 million.