A law firm recently announced that it has filed a class action lawsuit against a specialty biopharmaceutical company following claims that its offering registration statement contained false disclosures.
The class action suit was filed on behalf of all investors who purchased shares in Revance Therapeutics, Inc. in its June 19, 2014, follow-on public stock offering. Revance’s focus is “the development, manufacturing and commercialization of novel botulinum toxin products,” according to a October 2014 press release from the company. Products are manufactured for both aesthetic and therapeutic uses.
Class action focused on progress of topical drug RT001
At the center of the class action filing is the the topical RT001 drug product. The TransMTS technology used by the company allows for application of the botulinum toxin type A via two different dose formulations. The two types are RT001, a topical formula, and RT002, an injectable dosage.
RT001 was developed for therapeutic, as well as aesthetic purposes – such as crows feet.RT001 is being prepared for a number of aesthetic and therapeutic purposes, such as eliminating crows feet or obstructing hyperhidrosis, the name for excessive sweating. RT002 was made to be targeted and produce longer lasting effects. The injectable formulation was designed to wipe out glabellar – or frown – lines and to help treat muscle movement disorders.
“We believe taking the extra time to complete this short duration clinical study to confirm successful manufacturing transfer of RT001 prior to enrolling patients in our Phase 3 pivotal studies has the potential to benefit our pipeline of RT001 product candidates,” Dan Browne, Revance’s president and CEO, explained in the press update on the progress of the topical drug.
Investors allegedly mislead about progress of RT001 trials
The company had planned to conclude its U.S. Phase 3 RT001 pivotal study by the end of 2014, but, as Browne’s statement shows, did not commence the research until the final few months of last year. The class action suit alleges that this information is contradictory to the biopharmaceutical company’s follow-on public stock offering registration statement. In addition to the alleged false disclosure regarding the start of Phase 3 trials, the filing also claims that Revance did not have the proper quality RT001, or enough of the product, to begin trials on the topical drug.
The allegation explains that when the true details surrounding RT001 drug trials become public knowledge, share price plunged and investors suffered damages as a result of the registration statement’s supposedly false disclosures. Revance believes that the allegations are without merit, and plans on fighting the claims that it mislead investors.