A law office noted recently that it filed a securities class action lawsuit against a biopharmaceutical company, alleging certain breaches of the Securities Exchange Act of 1934.
Pomerantz, LLP, explained that the litigation was filed in the U.S. District Court for the District of New Jersey against Regado Biosciences, Inc. The class action lawsuit was initiated by the firm on behalf of all investors who purchased securities in the company between Aug. 22, 2013, and July 9, 2014.
The lawsuit claims that Regado did not inform investors of issues with ingredients in the drug Revolixys, or REG1, that had the potential to seriously derail the price of shares in the company. Regado's business focuses on finding and developing antithrombotic medications for acute and sub-acute cardiovascular indications. During testing of REG1, allergic reactions to an ingredient in the medicine were consistent and serious enough to put the entire trial in jeopardy.
Eventually, the Data Safety Monitoring Board and Food and Drug Administration were forced to step in and the company put the trial on hold due to the severity of the reactions. On July 3, 2014, Regado announced that the DSMB would carry out an unplanned review to determine the safety of the 3,234 involved in the study. At this point, the company paused the trial and announced it would remain suspended until the review was completed.
The news of the company's voluntary suspension of the clinical trial led to shares in Regado falling $3.95, or over 58 percent, on July 3. Furthermore, on July 9 after the market had closed for the day, Regado explained that the FDA had placed a hold on all patient enrollment and dosing in the trial. The next day saw shares in the company fall once again, this time $0.20, or over 7 percent. Those who purchased securities in the company, and would like to learn more about the class action lawsuit, should contact Robert S. Willoughby.
The REG1 trials
Review of the REG1 trial data is expected to take several months, according to Fox affiliate WHBL. Liana Moussatos, an analyst at Wedbush Securities, told the news source that the company will likely have to retool its product pipeline and strategy. The ingredients in REG1 are also present in Regado's REG2. Another medication, REG3, in preclinical development, does not contain the suspect ingredient. REG1 contains two ingredients that affect blood coagulation and help patients' blood return to normal.