XBiotech, Inc. investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, XBiotech is a clinical-stage biopharmaceutical company engaged in discovering and developing True Human™ monoclonal antibodies for treating a variety of diseases. The company concentrates on developing MABp1 (also known as Xilonix™, CA-18C3, CV-18C3, RA-18C3, T2-18C3 and Hutruo) (hereafter referred to as “Xilonix”), a therapeutic antibody which is supposed to neutralize interleukin-1 alpha (IL-1a). IL-1a is a pro-inflammatory protein produced by leukocytes and other cells, where it plays a key role in inflammation. The company completed its Phase I and II clinical trials for Xilonix as a treatment for cancer in 2012.
On February 2, 2015, in connection with its initial public offering, XBiotech filed a registration statement on Form S-1 with the SEC. The registration statement was later amended on Form S-1/As with the SEC, with its last amendment filed on April 10, 2015 (collectively the “Registration Statement”). On April 14, 2015, the SEC declared XBiotech’s Registration Statement effective.
The complaint alleges that, on April 20, 2017, after the market closed, XBiotech issued a press release disclosing Outcome of EMA’s [European Medicines Agency] Oral Explanation Meeting. On April 21, 2017, before the market opened, TheStreet published a follow-up article with quotes from the EMA’s Oral Explanation Meeting. The article provided the EMA’s review team’s conclusion that “[n]either the sensitivity analyses of the individual co-primary endpoints, nor the analyses of secondary or exploratory endpoints provide any supportive evidence for efficacy in favour of MABp1.”
Following this news, the company’s share price fell $6.79 from a closing price on April 20, 2017, of $17.02 per share, to a close of $10.23 per share on April 21, 2017, a drop of approximately 40%.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) the actual results were inconclusive; (2) the company misrepresented the endpoint used in the European Study; (3) the company’s claim of a 76% increase in improvement was misleading and represented a relative improvement rate, (4) ultimately, the companies’ studies would not support the approval of the application with the EMA, and (5) as a result of the foregoing, the defendants’ statements about its business and operations were materially false and misleading at all relevant times.
If you are a member of the class described above, you may no later than December 26, 2017 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.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.
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