A lawsuit was filed on behalf of investors in Celgene Corporation (NASDAQ: CELG) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 04/11/2018 -- An investor, who purchased NASDAQ: CELG shares , filed a lawsuit against Celgene Corporation over alleged violations of Securities Laws.
Investors who purchased shares of Celgene Corporation (NASDAQ: CELG) have certain options and for certain investors are short and strict deadlines running. Deadline: May 28, 2018. NASDAQ: CELG investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
On September 12, 2016, Celgene Corporation (NASDAQ:CELG) announced interim topline data from a randomized, double-blind, multicenter, exploratory phase 1b study evaluating the effects of oral GED-0301 (mongersen) on both endoscopic and clinical outcomes in patients with active Crohn's disease.
On October 19, 2017, Celgene Corporation revealed that it would be abandoning GED-0301, discontinuing ongoing trials, and would record a $1.6 billion impairment charge as a result of the drug's failure.
On October 26, 2017, Celgene Corporation revealed that certain of its key drugs had badly missed sales expectations for the quarter. Most notably, sales for Otezla – which management had just recently claimed were "going very, very well" – had slowed to only 2% U.S. growth, compared to 41% year-over-year growth in the prior quarter.
Con January 25, 2018, Celgene Corporation announced its fourth quarter and full year 2017 financial results. Celgene Corporation reported that its annual Total Revenue rose from over $11.22 billion in 2016 to over $13 billion in 2017 and that its Net Income increased from over $1.99 billion in 2016 to $2.94 billion in 2017.
Then, after the market closed on February 27, 2018, Celgene Corporation disclosed that it had received a refusal to file letter from the FDA in connection with the Company's NDA for Ozanimod. The Company revealed that both the clinical and nonclinical pharmacology sections of its NDA were found deficient by regulators.
Shares of Celgene Corporation (NASDAQ: CELG) declined to as low as $84.95 per share on March 23, 2018.
The plaintiff claims that between September 12, 2016 and February 27, 2018 , the defendants failed to disclose that trials for GED-0301 suffered from fatal design defects, such that GED-0301 had failed to demonstrate meaningful clinical efficacy, and that, as a result, there was an undisclosed risk and high likelihood that Celgene would be unable to develop GED-0301 into a commercially viable treatment for Crohn's disease. In addition, defendants also failed to disclose that the growth of Otezla sales had dramatically slowed during Celgene's third fiscal quarter of 2017 and that the clinical and nonclinical pharmacology data in Celgene's new drug application ("NDA") for Ozanimod were insufficient to permit a complete review by the FDA, which resulted in the FDA issuing a refusal to file letter to Celgene regarding the NDA. As a result of these false statements and/or omissions, the price of Celgene stock was artificially inflated during the Class Period to over $145 per share.
Those who purchased shares of Celgene Corporation (NASDAQ: CELG) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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