Scandal craters Hyperion's DiaPep277

Hyperion Therapeutics Inc. (NASDAQ:HPTX) said it is terminating diabetes candidate DiaPep277 following research misconduct -- a move that comes just three months after Hyperion spent about $20.4 million to acquire Andromeda Biotech Ltd. and the program.

Hyperion said it uncovered evidence that some Andromeda employees colluded with an Israeli biostatistics firm to improperly receive and manipulate unblinded data from the Phase III DIA-AID1 trial, and received unblinded data from the ongoing Phase III DIA-AID2 trial. Hyperion expects to complete the DIA-AID2 trial in 1Q15, but the company will not invest further in DiaPep277. ...