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Devastated: Innate Immunotherapeutics Ltd plunges 91% on announcement

The Innate Immunotherapeutics Ltd (ASX: IIL) share price has fallen 91% to $0.059 after the company released negative results to its Phase 2b trials this morning.

source: Google Finance

With its MIS416 treatment for multiple sclerosis found today to be no better than a placebo, the $144 million company looked vastly overvalued with a failed treatment and $6 million cash in the bank.

Curiously from the Google chart it also looks as though the sell-off began on Friday a few minutes before the company hurriedly entered trading halt. The announcement was only this morning which suggests that somebody with knowledge of the results was front-running the announcement. That’s something I’d hope the regulator will be looking closer at.

Either way Innate Therapeutics looks extremely risky and I would avoid it at all costs.

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Motley Fool contributor Sean O'Neill has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.