Hedge Fund Regal Hit by 89% Crash in Australian Biotech Stock

Sydney hedge fund Regal Partners Ltd. was dealt a fresh blow after Immutep Ltd., an Australian biotech company it backs, wiped out most of its A$582 million ($412 million) market value on Friday when it halted trials of a lung cancer drug.

Immutep plunged 89% after scrapping the trials on the recommendation of an independent data monitoring committee. Regal, which holds a roughly 14% stake in the company, dropped 5.2%.