Lung Cancer

Biopharmaceutical company fined for misleading investors

A Colorado-based biopharmaceutical company has been penalized more than $20 million for misleading investors about the efficacy of a lung cancer drug under development before raising $300 million in a public stock offering.

The U.S. Securities and Exchange Commission brought the complaint against Clovis Oncology Inc., of Boulder, and two company executives — CEO Patrick Mahaffy and former chief financial officer Erle Mast, the Daily Camera newspaper reports .

In a complaint filed in U.S. District Court in Denver, federal regulators said Clovis Oncology reported in May 2015 that its lung cancer drug was effective in reducing the size of tumors 60 percent of the time. They...