“Vicious” press coverage is part of the reason that high-profile biotech company Kadmon has had a disappointing debut on the public markets, CEO Harlan Waksal told CNBC Wednesday.
Just last month, Kadmon was eyeing an initial public offering that management hoped would raise $140 million. But the company raised just $75 million. And its share price slumped after debuting on the New York Stock Exchange Wednesday. Shares were priced at $12 initially, but had fallen to nearly $10 by midday.
Waksal said part of the problem was press coverage critical of him and his brother, Sam, who founded the company. STAT, for one, reported this week about past criminal charges against Sam and Harlan Waksal. The story also examined pending lawsuits accusing Sam Waksal and Kadmon of scamming investors. And it disclosed that the company has burned through cash at a stunning rate.