According to the complaint, Keryx is a biopharmaceutical company focused on marketing therapies for patients with renal disease. The company’s product, Auryxia (ferric citrate), also known as Riona in Japan and Fexeric in Europe, is an oral, absorbable iron-based compound, that received marketing approval from the U.S. Food and Drug Administration in September 2014 for the control of serum phosphorus levels in patients with chronic kidney disease on dialysis.
The complaint alleges that throughout the Class Period, the defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose: (1) that the company was experiencing production-related difficulties in converting active pharmaceutical ingredient (“API”) to finished drug product; (2) that the issue was resulting in decreased production yields of finished drug product; (3) that, as a result, the company would, and did exhaust its reserve of finished drug product; and (4) that, as a result of the foregoing, the defendants’ statements about Keryx’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
The Class Period commences on February 25, 2016, when Keryx issued a press release entitled, “Keryx Biopharmaceuticals Announces Fourth Quarter and Year-End 2015 Financial Results.”
The complaint alleges that on August 1, 2016, Keryx disclosed that that an interruption in the supply of Auryxia tablets was imminent due to a production-related issue converting API to finished drug product.
Following this news, Keryx’s stock price fell $2.64 per share, or 35.8%, to close at $4.72 per share on August 1, 2016, on unusually heavy trading volume.
If you are a member of the class described above, you may no later than October 3, 2016, move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
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