According to the law firm press release, Immunomedics is a biopharmaceutical company primarily focused on the development of monoclonal antibody-based products for the targeted treatment of cancer and autoimmune and other serious diseases.
In July 2008, Immunomedics entered into a License and Collaboration Agreement (the “Agreement”) with Nycomed GmbH (“Nycomed”), whereby the Company issued Nycomed a worldwide license to develop, manufacture and commercialize one of its most advanced therapeutic compounds, Veltuzumab, a humanized monoclonal antibody for the treatment of all non-cancer indications. Immunomedics retained the rights to develop, manufacture and commercialize Veltuzumab in the field of oncology. In September 2011, Nycomed was acquired by Takeda Pharmaceutical Company (hereinafter referred to as “Takeda-Nycomed”). As a result of entering into the Agreement, Takeda-Nycomed was solely responsible for completing the clinical development of and obtaining all necessary regulatory approvals for Veltuzumab, as well as commercializing and manufacturing Veltuzumab for sale in non-cancer indications.
The complaint alleges that, during the Class Period, defendants made numerous positive statements about Veltuzumab and its related development by Takeda-Nycomed. Unbeknownst to investors however, prior to and during the Class Period, the Company and Takeda-Nycomed were embroiled in an on-going dispute regarding what Immunomedics considered to be an unacceptable delay in the development of Veltuzumab. In fact, on May 14, 2013, just three days after the beginning of the Class Period, Immunomedics provided Takeda-Nycomed with a formal notification that, as a result of the delays in the development in Veltuzumab, it considered Takeda-Nycomed to be in “material breach” of the Agreement and that the Agreement would terminate if the breach remained uncured. Thereafter, defendants continued to make positive statements about Veltuzumab and its related development by Takeda-Nycomed.
Then, on October 9, 2013, Immunomedics issued a press release announcing that the Agreement with Takeda-Nycomed had been terminated. On this news, Immunomedics common stock dropped 5.9%, on very heavy trading volume. Moreover, the previous day, October 8, 2013, Immunomedics common stock dropped nearly 12%, on very heavy trading volume, as news about the termination of the Agreement leaked into the market.
On June 24, 2014, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel. Lead Plaintiff filed an amended complaint on August 8.
On January 28, 2015, the Court issued an Order granting defendants' Motion to Dismiss. Plaintiffs were given leave to amend their complaint. Plaintiffs filed an amended complaint on February 27.
On July 15, 2015, the Court issued an Order granting Defendant's motion to dismiss and closing this case.