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. True Human™ monoclonal antibodies are those which occur naturally in human beings—as opposed to being derived from animal mmunization or otherwise engineered. 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 proinflammatory protein produced by leukocytes and other cells, where it plays a key role in inflammation. When unchecked, inflammation can contribute to the development and progression of a variety of different diseases such as cancer, vascular disease, inflammatory skin disease, and diabetes.
The Complaint alleges that throughout the Class Period, Defendants publicly issued materially false and misleading statements and omitted material facts necessary to make Defendants' statements not false or misleading, causing XBiotech’s securities to be artificially inflated.