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Sirtex investigates CEO's share sale

AAP logoAAP 16/12/2016

Liver cancer treatment developer Sirtex Medical is investigating the sale of $2 million in shares by its chief executive in October.

CEO Gilman Wong sold 27 per cent of his stake in the company for $2.14 million in October, several days after the company confirmed its forecast of double-digit growth in sales for the financial year.

Sirtex last week downgraded its sales forecasts and warned its earnings could fall, sending its share price plummeting by 37 per cent.

Mr Wong said in November he had sold the shares to cover tax incurred on recently vested share rights.

Sirtex said on Friday it has formally engaged its legal advisers to lead an investigation into Mr Wong's share sale, following enquiries by shareholders and others.

Mr Wong denies any wrongdoing but has agreed to take temporary leave until the investigation is completed, which is expected to be in January.

"The Sirtex board wishes to emphasise that its decision to commission this investigation has been made solely for the purpose of ensuring that the concerns raised with the company are appropriately investigated, and in no way implies any wrongdoing on the part of Mr Wong," the company said.

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