NEW YORK, NY / ACCESSWIRE / August 6, 2022 / Pomerantz LLP announces that a class action lawsuit has been filed against Molecular Partners AG ('Molecular Partners' or the 'Company') (NASDAQ:MOLN) and certain of its officers and directors. The class action, filed in the United States District Court for the Southern District of New York, and docketed under 22-cv-05925, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired: (a) Molecular Partners American Depositary Shares ('ADSs') pursuant and/or traceable to the Offering Documents (defined below) issued in connection with the Company's initial public offering conducted on or about June 16, 2021 (the 'IPO'); and/or (b) Molecular Partners securities between June 16, 2021 and April 26, 2022, both dates inclusive (the 'Class Period'). Plaintiff pursues claims against the Defendants under the Securities Act of 1933 (the 'Securities Act') and the Securities Exchange Act of 1934 (the 'Exchange Act').
If you are a shareholder who purchased or otherwise acquired Molecular Partners ADSs pursuant and/or traceable to the Offering Documents (defined below) issued in connection with the Company's IPO, and/or Molecular Partners securities during the Class Period, you have until September 12, 2022 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Molecular Partners operates as a clinical-stage biopharmaceutical company that focuses on the discovery, development, and commercialization of therapeutic proteins. Leading up to and following the IPO, the Company repeatedly touted the clinical and commercial prospects of certain of its product candidates under development in collaboration with other companies.
Among other product candidates, Molecular Partners is developing ensovibep as a treatment for COVID-19 in collaboration with Novartis AG ('Novartis'). One of the Company's most important development strategies for ensovibep includes securing Emergency Use Authorization ('EUA') for ensovibep from the U.S. Food and Drug Administration ('FDA').
In addition, Molecular Partners is developing MP0310 (AMG 506) for the treatment of certain types of cancer in collaboration with Amgen Inc. ('Amgen'). The Company granted Amgen, among other licenses, the right to progress MP0310's development program into later stage development, including into combination trials, following Phase 1 data.
On April 22, 2021, Molecular Partners filed a registration statement on Form F-1 with the U.S. Securities and Exchange Commission ('SEC') in connection with the IPO, which, after several amendments, was declared effective by the SEC on June 15, 2021 (the 'Registration Statement').
On June 16, 2021, Molecular Partners filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (collectively, the 'Offering Documents').
Pursuant to the Offering Documents, Molecular Partners conducted the IPO, issuing 3 million of its ADSs to the public at the IPO price $21.25 per ADS, for proceeds to the Company of over $59 million, after underwriting discounts and commissions, and before expenses.
The complaint alleges that the Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation. Additionally, the complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (i) ensovibep was less effective at treating COVID-19 than Defendants had led investors to believe; (ii) accordingly, the FDA was reasonably likely to require an additional Phase 3 study of ensovibep before granting the drug EUA; (iii) waning global rates of COVID-19 significantly reduced the Company's chances of securing EUA for ensovibep; (iv) as a product candidate, MP0310 was less attractive to Amgen than Defendants had led investors to believe; (v) accordingly, there was a significant likelihood that Amgen would return global rights of MP0310 to Molecular Partners; (vi) as a result of all the foregoing, the clinical and commercial prospects of ensovibep and MP0310 were overstated; and (vii) as a result, the Offering Documents and Defendants' public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.
On November 16, 2021, Molecular Partners disclosed that 'a planned futility analysis of ensovibep in [an] ongoing [Phase 3] clinical study . . . has not met the thresholds required to continue enrollment of adults with COVID-19 in the hospitalized setting.'
On this news, Molecular Partners' ADS price fell $4.64 per ADS, or 31.37%, to close at $10.15 per ADS on November 16, 2021.
On April 26, 2022, months after applying for EUA from the FDA for ensovibep, Novartis' Chief Executive Officer, Vas Narasimhan, disclosed that 'given the latest feedback . . . in our discussions with the [FDA], we would expect the agency to require a Phase 3 study before granting an EUA approval or a general approval' for ensovibep, and that 'we need to make a kind of sober evaluation as to is it a doable study in light of the waning rates of COVID around the world[.]'
On this news, Molecular Partners' ADS price fell $2.68 per ADS, or 16.17%, to close at $13.89 per ADS on April 26, 2022.
Then, also on April 26, 2022, during after-market hours, Molecular Partners 'announced that Amgen . . . has informed the Company of their decision to return global rights of MP0310 to Molecular Partners following a strategic pipeline review.'
On this news, Molecular Partners' ADS price fell $5.19 per ADS, or 37.37%, to close at $8.70 per ADS on April 27, 2022-a total decline of $7.87 per ADS, or 47.5%, over two consecutive trading days, and 59.06% below the $21.25 per ADS IPO price.
As of the time the complaint was filed, the price of Molecular Partners' ADSs continued to trade below the $21.25 per ADS IPO price, damaging investors.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
SOURCE: Pomerantz LLP
View source version on accesswire.com: