Hyperion stops diabetes drug development

(Reuters) - Hyperion Therapeutics Inc said it would stop development of its diabetes drug, after the company discovered that certain employees of its recently acquired subsidiary engaged in unlawful conduct. Employees of the Israeli drug developer, Andromeda Biotech Ltd, which Hyperion acquired in June, engaged in serious misconduct that involved receiving unblinded data from the trial and manipulating it to obtain a favorable result, Hyperion said. (Reporting by Natalie Grover in Bangalore; Editing by Sriraj Kalluvila)