A

biotech stock meltdown last week led to huge paper losses for several congressional Republicans who had bought into the tiny company. But one politician-turned-investor was spared. Turns out, he had sold his shares just two weeks before news of a negative clinical trial decimated the company’s value.

Rep. John Culberson of Houston was among a half dozen House Republicans to invest in Innate Immunotherapeutics, an obscure Australian biotech company repeatedly talked up by Rep. Chris Collins of upstate New York, who is the company’s largest shareholder.

This is a STAT Plus article and you can unlock it by subscribing to STAT Plus today. It's easy! Your first 30 days are free and if you don't enjoy your subscription you can cancel any time.
Already a subscriber? Log in here.

Leave a Comment

Please enter your name.
Please enter a comment.

  • So they purchased stock and got pilloried for a “sweetheart” deal and then pilloried again when it tanked and they lost money? Sounds like the market to me. I get pilloried by my better half.

    • I think part of the problem is that Collins is not supposed to make stock recommendations in a stock in which he is an insider — a director and largest shareholder.
      The other 5 republicans are trying to argue that they all bought the stock completely on their own – yet how would anyone believe that?
      Of course, the current SEC won’t investigate a republican.

  • When is Trump going to clean out the swamp???? He gas made the swamp bigger and dirtier with his family & close allies floating to the top & oh so visible. The bald eagle had a right to hang its head in emarrassment & sorrow. Happy Birthday America. Believe in God.

Sign up for our Biotech newsletter — The Readout

Your daily guide to what’s new in biotech.