SRX is a life-sciences company which, during the relevant period, was listed on the ASX100. Sirtex has regulatory approval for the sale of a product called SIR-Spheres Y-90 resin microspheres which provides targeted radiation treatment for liver tumours. The SIR Spheres are priced at around USD$16,000 per dose.
The primary disclosure issue in the proceeding related to Sirtex's continuing "double digit" dose sales growth guidance given on 24 August 2016. In late 2016, following queries by the ASX as to the accuracy of its guidance, Sirtex announced on 9 December 2016 that the dose sales growth rate would be 4% to 6% rather than the 15.7% previously forecast. Following that announcement, the Sirtex share price fell by 37%.
Also at issue in the proceeding was the nature of share trades undertaken by then-CEO, Gilman Wong. Mr Wong sold 74,968 Sirtex shares on 26 October 2016 in order to, in the company's words, "cover the tax incurred in relation to the recently vested tranche of rights." On 16 December 2016, Sirtex announced that it had formally engaged its legal advisors, Watson Mangioni, to investigate Mr Wong's trading activities. Following this announcement, the Sirtex share price suffered a two day price drop of 9%. Mr Wong's employment with Sirtex was subsequently terminated on 13 January 2017.