Why Legend Biotech Stock Is Sinking Today
Shares of the Chinese anti-cancer cell therapy specialist Legend Biotech (NASDAQ: LEGN) are poised for a rough session today. Ahead of the opening bell Monday morning, the biotech's stock fell by as much as 15.8% in response to the news that the Customs Anti-Smuggling Department of the People's Republic of China (PRC) inspected offices associated with both its parent majority shareholder, GenScript Biotech Corporation, and some of its own subsidiaries in the country.
Legend said this customs inspection appears to be related to suspected violations of import and export regulations under the laws of the PRC. As part of this investigation, the biotech's Chief Executive Officer, Fangliang Zhang, has reportedly been placed under residential surveillance by PRC law enforcement. In response, Legend has named its current Chief Financial Officer, Ying Huang, as interim CEO, effective immediately.
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Source Fool.com
