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The biotechnology company British Biotech is to be investigated for a second time by the London Stock Exchange following further revelations last week about its handling of data about sensitive clinical trials.

The investigation follows a decision by the US Securities and Exchange Commission to investigate the accuracy of statements about the company's main anticancer drug marimastat. Concern has also been reported about the company's decision to hold back news of difficulties in clinical trials with its other main drug, the pancreatitis therapy Zacutex.

These developments, as well as this month's sacking of Andrew Millar, director of clinical research (see Nature 392, 746; 1998), have seen British Biotech's share price nosedive to less than £0.50 from a high of almost £3.00 in 1996, reducing the value of the company from nearly £2 billion to £330 million.

The company's shareholders are now waiting for British Biotech to break its silence. Failure to do may strengthen calls for the removal of its founder and chief executive, Keith McCullagh. A statement from the company was expected this week.

The London stock market had previously cleared a move by three British Biotech directors, including McCullagh, to profit from the sale of shares in January 1995. The sale took place less than two weeks before the suspension of trials on batimastat, which was then the company's main anticancer drug. Batimastat was abandoned soon after.

It has now emerged that Millar circulated a memorandum as early as October 1994 calling for a halt to the clinical trials of batimastat following the discovery of side-effects.

Millar was dismissed two weeks ago for allegedly passing on confidential information to shareholders about the status of clinical trials with the company's latest flagship drugs. He has said that he was concerned that the company was not being open with shareholders about the progress of its drug trials.

The European Medicines Evaluation Agency (EMEA) wrote to British Biotech in May 1997 detailing its objections to an application for marketing approval for Zacutex filed in February.

It said that apparently positive results from Zacutex trials in the United Kingdom did not provide conclusive evidence that the drug reduced deaths among sufferers of acute pancreatitis.

British Biotech issued a statement on the success of the UK trial result without alluding to EMEA's reservations. The stock market was not informed of EMEA's objections for another nine months.

Millar has said he was aware that positive results from UK clinical trials were not matched by interim results from a parallel — and larger — trial in the United States, and that the company's senior officials were made aware of this information as early as November 1996.

Shareholders, who include leading British fund management companies such as Perpetual and Mercury Asset Management, are expected to ask for a special meeting if the company's statement does not answer questions about the investigations, as well as the state of the company's flagship drugs and its overall strategy.