Immix Biopharma Stock Falls 13% After Report Alleges CMO Was a Fugitive

Shares of Immix Biopharma (NASDAQ:IMMX) plunged on Monday following a media report that its recently appointed Chief Medical Officer was allegedly a fugitive who had been on the run for two decades before being arrested last week.

Fugitive Allegations Surface

The sell-off was triggered by a report from STAT News identifying the executive, hired in March under the name Richard Graydon, as Ronald Fischer. According to U.S. marshals cited in the report, Fischer, a 70-year-old former anesthesiologist, disappeared in 2005 while on trial for first-degree sexual assault.

Federal and Rhode Island authorities reportedly tracked Fischer to a sailboat off the coast of New Jersey, which was registered under the name Richard Graydon. He was arrested on the vessel last week.

Company Response and Market Impact

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In an 8-K filing with the Securities and Exchange Commission, Immix Biopharma announced it had terminated Graydon's employment. The Los Angeles-based biotech company stated the termination was for "reasons unrelated to his activities at the Company."

Immix also asserted that it expects no material impact on its business as a result of the firing. Despite the company's statement, investors reacted negatively to the revelations, sending Immix shares down by 13% in Monday's trading.

Scrutiny on Due Diligence

The incident raises significant questions about the company's corporate governance and its due diligence process for executive-level hires. The ability of a wanted fugitive to allegedly secure a C-suite position under an alias has put a spotlight on the operational and reputational risks facing the clinical-stage biopharmaceutical firm.