Having now read the full transcript of the CC this fiasco is now coming into full focus. Robin admits they had noted the 'issue' months ago and were trying to figure out causation for the variance in results. So what was Robin doing during this period--unloading about $1 billion of his shares. Having participated in a clinical trial I understand the fact the patients have to sign massive amounts of release forms to be admitted to the trial. But this isn't a case where the drug was doing them harm, the issue is simply the drug companies were dosing with a drug that wasn't what they signed off for being dosed with. I just find it hard to comprehend--two drug companies with years of drug development where they were combining their respective component to make the new drug--and they had no system in place to validate the components being combined to make the new drug. HOW! Just HOW could the most critical aspect of the effort (blending the respective components to make the new drug) and they had no clue to what was or what was being added to the mix.
Furthermore, hasn't NKTR opened themselves to liability suits by dosing patients with something other than what they had signed off to use in the clinical trial. A good tort lawyer will have a field day questioning NKTR's CEO--"Mr. Robin, when did you become aware of the variance in response rates in the clinical trial patients? " Mr. Robin, why did you sell $1 million worth of your Nektar stock?" "Mr. Robin, you reported on August 8th, that you had already informed the FDA of the issue, when did you inform the trial patients they had been dosed with a defective drug?" "Mr. Robin, considering you were well aware there was a defective product being used with patients, why didn't you inform your shareholders about this issue. Don't you think a defective drug that could impact patient's life is a material event worthy of disclosure.
And one final question, Mr. Robin! "Are you familiar with Sam Waskal and Martha Stewart?"