Eagle Pharmaceuticals, Inc. (Nasdaq: EGRX)
A class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of purchasers of Eagle Pharmaceuticals, Inc. (Nasdaq: EGRX) common stock during the period between February 23, 2016 to March 18, 2016, inclusive (the “Class Period”).
The complaint charges Eagle and its Chief Executive Officer with violations of the Securities Exchange Act of 1934. Eagle is a specialty pharmaceutical company focused on the development and commercialization of injectable drugs. On May 20, 2015, Eagle submitted a New Drug Application (“NDA”) to the U.S. Food and Drug Administration (“FDA”) for its RTU bivalirudin product, Kangio™. Kangio is a ready-to-use blood thinning drug intended for use in preventing blood clots in patients undergoing heart surgery. The Company announced that the FDA had accepted Eagle’s NDA on June 30, 2015, and that FDA action was due by March 19, 2016.
The complaint alleges that throughout the Class Period, defendants made misrepresentations about the potential for FDA approval of Kangio, including that the Company “ha[d] every expectation that based on [its] file and the dialogue that’s been ongoing that [it would] get approval” for Kangio and expected to launch by March 19, 2016, and that the Company expected “to be the next entrant into this market ahead of other generics” and felt “good about [its] chances of capturing a meaningful share of that market.” In addition, the Company stated that it had “been interacting with the FDA and [was] preparing for launch,” that “everything seems to be on track for a March 19 approval,” and that it “anticipated shipping in late Q1 or early Q2.” As a result of these misrepresentations, Eagle securities traded at artificially inflated prices during the Class Period, with its stock price reaching close to $70 per share.
Then on March 18, 2016, the Company announced that it had received a Complete Response Letter from the FDA regarding Kangio, stating that it could not approve the drug application for Kangio in its current form and requesting further characterization of bivalirudin-related substances in the drug. On this news, the price of Eagle stock fell $10.18 per share, or almost 19%, from its previous close of $53.68 per share to a close of $43.50 per share – a decline of over 37% from the stock’s Class Period high.
If you are a current shareholder and/or purchased stock between February 23, 2016 to March 18, 2016, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
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