Drugs firm Exscientia facing lawsuit in US after founder’s sacking

DRUG discovery firm Exscientia is facing legal action from investors after the dismissal of its multimillionaire founder.

Professor Andrew Hopkins created Exscientia in 2012 while he was based at Dundee University.

The company, which uses artificial intelligence to speed up the drug design process, was valued at around $2.5 billion when it listed on the Nasdaq stock exchange in the United States in 2021.

But in February, Exscientia terminated Mr Hopkins’ employment as chief executive after a probe into his conduct.

A statement said: “The board’s decision was taken following an investigation which found that Dr Hopkins had engaged in relationships with two employees that the board determined were inappropriate and inconsistent with the company’s standards and values.”

Exscientia has insisted Dr Hopkins’ personal conduct did not impact the running of the company.

But how it dealt with the scandal is now likely to end up in court.

Chairman David Nicholson quit after an investigation found he had prior knowledge of the existence of the earlier of Mr Hopkins’ relationships.

Exscientia said he “addressed the situation directly, and with the involvement of other outside counsel, rather than in consultation with the board”.

This prior knowledge is the basis of a class action suit filed by law firm Bragar Eagel & Squire in a New Jersey federal court last week.

It is looking for more investors, who held shares between March 23 2022 and February 13 this year, to join the suit.

The annual report and other filings affirmed that Exscientia’s employees and officers were following the company’s relevant code of conduct.

The complaint alleges that the defendants made “materially false and misleading statements regarding the company’s business, operations, and prospects”.

Exscientia, which retains an office at River Court in City Quay, was asked to comment.