Former Neutec FD charged with insider dealing

THE former finance director of Manchester biotech business Neutec Pharma appeared in court this week to face insider dealing charges relating to its 2006 takeover by a Swiss firm.

Andrew King was charged at the City of Westminster Magistrates Court along with two senior corporate lawyers.

He is accused of disclosing inside information relating to the £305m acquisition by Novartis to Michael McFall, a former partner at the US law firm McDermott Will & Emery.

Mr McFall was charged with disclosing the inside information to Andrew Rimmington, a former corporate partner at the London office of US firm Dorsey & Whitney, and with buying Neutec shares on the basis of the information.

Mr Rimmington has also been accused of buying shares after receiving the information.

The case, which has been brought by the Financial Services Authority, was adjourned until July 28 when magistrates will consider a committal to Crown Court for trial. All three were granted unconditional bail.

NeuTec was founded in 1997 with backing from 3i by husband and wife team Prof James Burnie and his wife Prof Ruth Matthews. It has developed drugs to fight hospital superbugs such as MRSA along with breast cancer and a strain of meningitis.

The deal earned the pair, who had a 7% stake in the firm, around £20m.