Subject: Trading Resumes In Medarex Stock Following Probe 
Date: Published: 9/1/92 (56 lines)
Source: Wall Street Journal. Copyright Dow Jones & Co. Inc.

    Trading Resumes
    In Medarex Stock
    Following Probe
    ----
    By Susan Pulliam
    Staff Reporter of The Wall Street Journal

    The cloud over Medarex Inc. 's stock may not pass quickly,
 although the company yesterday denied any impropriety.
    Trading resumed yesterday and the shares closed in trading on the
 national over-the-counter market at $6.75, off 12.5 cents.  Volume
 approached 575,000, about 18 times grater than usual for the stock.
 Some volume may have come from shortsellers buying shares to cover
 previous bearish bets they had made against the stock.
    The Princeton, N. J., biotechnology company said yesterday that it
 has completed an investigation of "anonymous claims regarding
 business and scientific activities" and found the allegations
 "totally without merit."
    But Dartmouth College, which owns 9% of the company, said it will
 continue to "review" the charges that were outlined in an anonymous
 letter sent to the college.  "Our review will clearly be
 deliberative," a Dartmouth spokesman said.
    The company said the charges center on questions about the
 effectiveness of technology being developed by Medarex, its
 financial controls and its compliance with certain laws.  The company
 was established in 1987 as a joint venture, including some Dartmouth
 faculty members, to develop technology to treat AIDS, cancer and
 other diseases.
    Yesterday's announcement by Medarex follows its unusual decision
 late last week to cancel a stock offering that had already become
 effective Thursday.  Trading in Medarex stock was halted Thursday
 afternoon and didn't resume Friday.  The moves came after Dartmouth's
 medical school said it was looking into questions raised in the
 letter about the relationship between the college, some of its
 faculty members and the company.
    The company said its investigation was made by its auditors,
 Ernst & Young, and its law firm, Satterlee Stephens Burke & Burke.
 Medarex wouldn't disclose further details of the charges, though it
 called them "unfounded."
    The company said Ernst & Young has concluded that the company's
 financial statements comply with generally accepted accounting
 principles and Satterlee Stephens has issued an opinion that Medarex
 is in compliance with all applicable laws.
    Medarex quoted an authority on the company's technology, Jan G. J. 
 van de Winkle, of the University of Utrecht in the Netherlands, as
 saying that the criticisms of the technology "represent a very
 unprofessional, unsound and unfair attack on an original and very
 promising approach."

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