Broker Cenkos suspends analyst after anonymous research claim
City of London stockbroker Cenkos Securities has suspended biotech analyst Navid Malik after accusations made by the anonymous team at UK-based research house, Phase Five Research.
Malik, the broker's head of life sciences research, was suspended by Cenkos this month, according to a report in the Sunday Times, with his status as an 'approved person' at the firm terminated on 4 November 4, the Financial Conduct Authority's register shows.
Cenkos declined to comment but has not accused Malik of wrongdoing, the Times said, but was suspended to allow the broker time to investigate the allegations made against him.
Allegations were made against Malik in a report by Phase Five called 'Northwest Biotherapeutics house of cards is ready to collapse' on 28 October.
Now valued at close to $450m, US-based biotech Northwest, in which fund manager Neil Woodford is a major investor, was listed on London's AIM until 2009 when it shifted its listing over to the US.
Malik has been covering the company as an analyst since 2010 and was made a non-executive director in 2012.
Phase Five is focused on researching healthcare and biotechnology companies, but its website has no details about its principal operators apart from a claim that its research team "is built on the knowledge and vast experience of PhDs, Big Data experts and seasoned Life Science investors."
The firm admits in its disclaimer that when it publishes any report on its site, it should be assumed that the company, employees and clients have taken an investment position in the stock, be that a long or short bet, "and therefore stands to realize significant gains in the event that the price of the stock increases or declines".