Collins quits biotech’s board amid corporate overhaul, fresh controversy
The congressman's spokeswoman,
According to the terms of that acquisition, Innate will get several new board members formerly associated with Amplia, Innate said in a corporate filing.
Innate's shareholders approved the acquisition of Amplia, as well as the new board members, at a meeting in
The congressman's involvement in Innate resulted in a still-pending
In addition, Collins' resignation came the week after a Daily Beast story that outlined four bills that he sponsored that could have aided Innate, prompting fresh criticism from ethics watchdogs.
In light of all that, the first person to file an ethics complaint against Collins --
"It sure took him a long time," Holman said.
Board seat a rarity
Collins has defended his involvement in Innate and denied any wrongdoing.
"Throughout my tenure in Congress I have followed all rules and ethical guidelines when it comes to my personal investments," he said in a statement after the
Collins was deeply committed to Innate, as well. Last August, while
"Chris has been a fabulous supporter of the company since 2005," Innate CEO
Despite his departure from Innate's board, he remains a company shareholder, Minkel said.
Innate's website states that, as of
Under the deal, Innate will acquire all the shares of Amplia, a privately held company, in exchange for new shares to be issued by Innate this coming week. Once the deal is settled, Amplia shareholders will own 45 percent of Innate's stock.
Collins has not yet, however, filed any reports this year indicating that he has sold any of his Innate stock.
The lawmaker's heavy investment in the company has been at issue as well as his seat on the company's board, given that he has touted the company's stock not only to investors in
In addition, Collins serves on the
That being the case, "the conflict of interest is still very present if he hangs onto his shares," Holman said.
Innate reinvents itself
Collins now finds himself invested in a very different company.
Innate announced a month ago that it was acquiring Amplia, which has two immunotherapy products that aim to fight cancer. Innate's immunotherapy product, which it was testing for treatment of secondary progressive multiple sclerosis until the drug failed in clinical trials last year, is now being tested for its effectiveness against cancer as well, Innate said in announcing the company's change in direction.
"Refocusing on this existing area of our business is a logical move for the company and we are particularly excited to be pursuing certain cancers where the immune system could play an important role in successful treatment strategies," said Innate's CEO,
The Australian stock market liked the change in direction, leading to a run-up in Innate's stock from
Innate remains a long-term loser for Collins, however; a source close to the congressman said he lost about
Collins not only touted Innate's only product as a miracle drug to congressional colleagues and other potential investors, he touted it as just that in an interview with
"Of all the things I will accomplish in my life, this will be number one on my tombstone: if, because of my involvement, we have cured secondary progressive multiple sclerosis, the most debilitating disease known to mankind," Collins said, according to a transcript of the interview.
Innate announced last August that it would search for a new mission and a new potential use for its failed MS drug.
But that new mission won't include Collins, who had no part in negotiating the Amplia deal, Minkel said.
"He won't be a part of the new entity," she added.
More controversy
Much of the controversy involving Collins and Innate involved the fact that he wrote parts of the 2016 "20th Century Cures Act" that made it easier for companies like Innate to conduct clinical trials on their new drugs.
* In 2013, he proposed a bill that would have given more money to a
* In 2016, he introduced a bill that would have made it easier to get
* In 2017, Collins put forward a bill that would allow drug companies to use a new method of research in their clinical trials.
* In 2017, he suggested a bill that would have excluded pricey "infusion" drugs -- like Innate's proposed MS treatment -- from a government program aimed at reducing drug prices.
Asked about
"None of these bills were supported to help Innate," she said. "Instead they were supported to make sure all Americans can receive the cutting edge treatments they deserve."
None of those four proposed bills made it into law, but the fact that Collins sponsored them prompted the
"In this polarized political climate, now more than ever we need legislators to avoid even the appearance of a conflict of interest in the legislation they are considering and enacting," said
Collins has other financial ties to the pharmaceutical industry in addition to Innate. According to the non-partisan
Asked if Collins would recuse himself from future legislation affecting the pharmaceutical industry, Minkel said only: "No."
___
(c)2018 The Buffalo News (Buffalo, N.Y.)
Visit The Buffalo News (Buffalo, N.Y.) at www.buffalonews.com
Distributed by Tribune Content Agency, LLC.
CNA Financial Announces 1Q Results
Mariners Alternative launches LightningShield™ – a striking new insurance solution for Florida boaters
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News