NEW YORK, Sept. 7, 2016 /PRNewswire/ -- Robbins Geller
Rudman & Dowd LLP ("Robbins Geller")
(http://www.rgrdlaw.com/cases/keryx/) previously announced that a
class action complaint was filed in the United States District
Court for the Southern District of New
York, captioned Erickson v. Keryx Biopharmaceuticals,
Inc., No. 16-cv-06218, on behalf of purchasers of Keryx
Biopharmaceuticals, Inc. ("Keryx" or the "Company") (NASDAQ:KERX)
common stock during the period between March
2, 2016 and July 29, 2016,
inclusive (the "Class Period").
Keryx is a biopharmaceutical company that develops and markets
treatments for renal disease. The Company's lead product,
Auryxia (ferric citrate), is an oral ferric iron-based compound
that is used for the control of serum phosphorus levels in patients
with chronic kidney disease on dialysis. Keryx commenced its
commercial launch of Auryxia in the
United States in December
2014.
The complaint alleges that during the Class Period, defendants
violated the Securities Exchange Act of 1934 by misrepresenting and
failing to disclose material adverse facts regarding the Company's
business and prospects, which were known to defendants or
recklessly disregarded by them, including that: (a) Keryx was
relying upon a sole third-party contract manufacturer for Auryxia
that was experiencing manufacturing difficulties that could require
that third-party manufacturer to cease manufacture of Auryxia while
manufacturing problems were rectified; (b) without that sole
third-party contract manufacturer manufacturing Auryxia, Keryx
would not have enough inventory of Auryxia to meet its projected
sales guidance; (c) Keryx was attempting to get another third-party
manufacturer for Auryxia approved by the FDA, but that manufacturer
would not be approved until at least November 2016; and (d) based
on the foregoing, defendants lacked a reasonable basis for their
positive statements about the Company, its business and financial
prospects, and its ability to meet its 2016 guidance during the
Class Period.
On August 1, 2016, Keryx issued a
press release and conducted a conference call with investors and
analysts during which the Company revealed an imminent interruption
in the supply of Auryxia until at least October 2016 due to previously undisclosed
manufacturing and supply issues, forcing Keryx to withdraw its
fiscal 2016 guidance. Keryx also disclosed that it would not
be able to get its second contract manufacturer approved by
regulators until at least November 2016. On this news, the
market price of Keryx common stock declined precipitously, falling
36% from its prior closing price on unusually high trading
volume.
As Healthcare Industry analyst Brian
Feroldi recently lamented in a September 6, 2016 report to investors: "[W]e
don't yet know how providers will respond to the news of
manufacturing issues with Auryxia, so it's possible that the strong
prescription growth we saw in the second quarter is about to come
to a screeching halt." As a result, the price of Keryx common
stock remains depressed, erasing tens of millions of dollars of
market capitalization for those who purchased Keryx stock at
artificially inflated prices during the Class Period.
Plaintiff seeks to recover damages on behalf of all purchasers
of Keryx common stock during the Class Period (the "Class").
The plaintiff is represented by Robbins Geller, which has extensive
experience in prosecuting investor class actions including actions
involving financial fraud.
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from August 2,
2016. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests,
please contact plaintiff's counsel, Samuel H. Rudman, David A.
Rosenfeld or Andrew L. Schwartz of Robbins Geller at 800/449-4900
or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are
a member of this class, you can view a copy of the complaint as
filed online at http://www.rgrdlaw.com/cases/keryx/. Any
member of the putative class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do
nothing and remain an absent class member.
Robbins Geller is widely recognized as one of the leading law
firms advising U.S. and international institutional investors in
securities litigation and portfolio monitoring. With 200
lawyers in 10 offices, Robbins Geller has obtained many of the
largest securities class action recoveries in history and was
ranked first in both the total amount and number of shareholder
class action recoveries in ISS's SCAS Top 50 Report for the last
two years. Robbins Geller attorneys have shaped the law in
the areas of securities litigation and shareholder rights and have
recovered tens of billions of dollars on behalf of the Firm's
clients. Robbins Geller not only secures recoveries for
defrauded investors, it also strives to implement corporate
governance reforms, helping to improve the financial markets for
investors worldwide. Please visit rgrdlaw.com/cases/keryx/
for more information.
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SOURCE Robbins Geller Rudman & Dowd LLP