SAN DIEGO–(BUSINESS WIRE)–The class: Shareholder rights law firm Robbins LLP reminds investors that a shareholder has filed a class action lawsuit on behalf of all individuals and entities that purchased Centessa Pharmaceuticals plc (NASDAQ: CNTA) American Depository Shares (ADS ) in accordance with the Company’s initial public announcement dated May 28, 2021. (“IPO”) and/or between May 28, 2021 and June 1, 2022. Centessa is a clinical-stage pharmaceutical company that claims to discover, develop and deliver medicines to patients. The Company’s development pipeline includes, among other products, lixivaptan, which is in phase 3 clinical development for the treatment of autosomal dominant polycystic kidney disease (“ADPKD”), and ZF874, which is in phase 1 clinical development for the treatment of A1AT deficiency (“AATD”).
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What this case is about: Centessa Pharmaceuticals plc (CNTA) has made false and misleading statements regarding its product candidates in connection with its IPO
According to the complaint, Centessa completed its IPO in May 2021, offering shares at $20 per ADS for proceeds of $306.9 million. In the Offer Documents and throughout the Class Period, the Defendants failed to disclose that: (i) lixivaptan was less safe than the Defendants claimed; (ii) the defendants exaggerated the clinical and commercial prospects of lixivaptan; (iii) ZF874 was less secure than defendants had represented; and (iv) the defendants exaggerated the clinical and commercial prospects of ZF874 while downplaying the drug’s safety concerns.
On November 1, 2021, Centessa issued a press release announcing the results of the Phase 1 study evaluating ZF874 for the treatment of AATD, including, among other results, potential safety issues related to increased liver enzymes alanine aminotransferase (“ALT”) and aspartate aminotransferase (“AST” in one of the study subjects. On this news, Centessa’s ADS price fell $3.19 per share, or 18, 55%, to close at $14.01 per share on November 1, 2021.
On June 2, 2022, Centessa announced “it has made the strategic decision to discontinue the development of lixivaptan for [ADPKD,]citing “a recent observation of [ALT] and [AST] elevations in one subject” from a Phase 3 study of lixivaptan designed to evaluate hepatic and non-hepatic safety in selected subjects. On this news, Centessa’s ADS price fell $1.25 per share, or 27.78%, to close at $3.25 per share on June 2, 2022.
Then, on August 10, 2022, Centessa issued a press release “announcing[ing] its decision to discontinue development of ZF874 following a recent adverse event (AE) report involving elevated liver enzymes (AST/ALT) in a . . . subject received 5 mg/kg BID of ZF874 in the Phase 1 study.” Centessa stated that “[b]Based on the results observed to date, the Company has concluded that ZF874 is unlikely to achieve the desired target product profile. Following this news, the price of Centessa’s ADS fell $0.26 per share, or 5.19%, to close at $4.75 per share on August 10, 2022, representing a decline aggregate of 76.25% over the offering price of $20.00 per ADS.
Next steps: If you acquired shares of Centessa Pharmaceuticals plc as part of the company’s IPO or between May 28, 2021 and June 1, 2022, you have until November 28, 2022 to ask the court to appoint you as plaintiff. main of the group. A lead plaintiff is a representative party acting on behalf of other class members to direct litigation. You don’t have to be in the case to be eligible for a clawback.
All representation is done on a contingent fee basis. Shareholders do not pay any fees or expenses.
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