According to the law firm press release, PolyMedix is a clinical stage biotechnology Company that develops drugs for the treatment of serious acute care conditions. Throughout the Class Period, the Company had two experimental compounds in clinical trials, PMX-30063 and PMX-60056. One of these prospective drugs, PMX-60056, was a cardiovascular compound that was intended to reverse the activity of common blood clotting agents in order to avoid the risk of stroke.
The complaint alleges that beginning on March 7, 2011, the Company, along with its Chief Executive Officer, Chief Financial Officer, and Vice President of Cardiovascular Clinical Development, issued a series of materially false and misleading statements to investors about PMX-60056’s commercial viability, safety, and market potential that caused shares of PolyMedix to trade at artificially high prices. Specifically, it is alleged that officials at PolyMedix failed disclose to investors that: (a) the Company’s experimental compounds caused hypotension more often and at lower doses than acknowledged; (b) varying doses of the compound would not eliminate its adverse side effects on a patient’s blood pressure; and (c) as a result, the development of the Company’s drug pipeline and the business prospects of PolyMedix were at significant risk.
On May 10, 2012, PolyMedix issued a press release disclosing to investors for the time that the Company was halting patient enrollment in clinical trials for PMX-60056 “due to observations of reductions in blood pressure.” When the true state of PMX-60056’s clinical development and adverse side effects became public, shares of PolyMedix’s common stock declined a staggering 29%, closing on May 11, 2012 at just $0.36 per share.
On September 19, 2012, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel. On January 28, 2013, lead plaintiffs filed their amended complaint.
The parties entered into a Stipulation of Settlement on December 23, 2014. This Settlement was preliminarily approved by the Court on January 13, 2015. The Court granted final approval of this Settlement on April 30, and ordered this case to be closed.