Robbins Arroyo LLP: Keryx Biopharmaceuticals, Inc. (KERX) Misled Shareholders According to a Recently Filed Class Action
August 19 2016 - 2:59PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against Keryx Biopharmaceuticals,
Inc. (NASDAQCM: KERX) in the U.S. District Court for the Southern
District of New York. The complaint is brought on behalf of all
purchasers of Keryx securities between February 25, 2016 and July
29, 2016, for alleged violations of the Securities Exchange Act of
1934 by Keryx's officers and directors. Keryx is a
biopharmaceutical company that focuses on providing therapies for
patients with renal disease in the United States. Its product,
Auryxia, is an oral, absorbable iron-based compound designed to
control serum phosphorous levels in patients with chronic kidney
disease on dialysis.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/keryx-biopharmaceuticals-inc
Keryx Accused of Hiding Production Problems Surrounding Its
Drug Product
According to the complaint, throughout the class period, Keryx
submitted several filings with the U.S. Securities and Exchange
Commission and issued multiple press releases touting Auryxia's
solid foundation and positive forward-looking guidance about the
company's financial outlook. The company elaborated, "For 2016, we
expect prescription volume to increase between 20 percent and 35
percent on a sequential quarter basis, ramping as we realize the
full impact of our expanded sales force." The company further
stated, "[O]ur top priorities for this year are to increase
adoption of Auryxia in the dialysis setting, submit a regulatory
application seeking label expansion, and prepare for potential
launch in 2017 in the new indication." However, the complaint
alleges that Keryx officials failed to disclose that: (i) the
company was experiencing production-related difficulties in
converting active pharmaceutical ingredient ("API") to finished
drug product; (ii) the foregoing difficulties were resulting in
decreased production yields of finished drug product; and (iii)
consequently, the company would exhaust its reserve of finished
drug product.
On August 1, 2016, Keryx disclosed that an interruption in the
supply of Auryxia tablets was going to occur due to a
production-related issue concerning API at its contract
manufacturer. The company further stated that current inventories
of Auryxia are not sufficient to ensure uninterrupted patient
access to the medicine, and that it expects to make Auryxia
available to patients when the supply is back to adequate levels,
likely in the fourth quarter of 2016. On this news, Keryx stock
fell $2.64 per share, or 35.8%, to close at $4.72 per share on
August 1, 2016.
Keryx Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20160819005662/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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