According to the law firm press release, NewLink, a biopharmaceutical company, focuses on discovering, developing, and commercializing immunotherapeutic products to enhance treatment options for patients with cancer. Among the Company’s product candidates is algenpantucel-L, a pancreatic cancer treatment.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s algenpantucel-L treatment was ineffective and potentially harmful to patients; and (ii) as a result of the foregoing, NewLink’s public statements were materially false and misleading at all relevant times.
On May 9, 2016, post-market, NewLink announced that algenpantucel-L did not meet the main goal in the Company’s Phase 3 IMPRESS study. Patients treated with algenpantucel-L lived for a median of 27.3 months in NewLink's Phase 3 trial, compared to median survival of 30.4 months for patients treated with standard therapy, suggesting that patients were actually harmed by NewLink's treatment.
On this news, NewLink's stock price fell $5.05, or 30.61%, to close at $11.45 on May 10, 2016.
On August 16, 2016, the Court appointed Lead Plaintiff and Counsel. Lead Plaintiffs filed an amended complaint on October 31. A corrected version of this complaint was filed on November 10.