University of Utah

Soon-Shiong biotech company's stock plunges after report

Soon-Shiong biotech company's stock plunges after report

Shares of Patrick Soon-Shiong’s biotech firm plunged this week after a news report raised questions of whether the Los Angeles billionaire had used a donation to a university to artificially inflate the outlook for the company’s operations.

STAT, a news group affiliated with the Boston Globe, reported Monday that Soon-Shiong and his charitable foundations gave the University of Utah $12 million for genetic disease research in 2014. The university later paid $10 million of that amount to NantHealth, a Culver City company founded by Soon-Shiong.

In November, NantHealth told investors that the company had received 524 orders for one of its key products — a genetic test known as...

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