Bellicum Accused of Hiding Serious Adverse Effects of its Drug
According to the complaint, on May 8, 2017, Bellicum (NasdaqGM: BLCM) announced that it experienced a productive first quarter across its pipeline and presented clinical data highlighting BPX-501’s potential to transform lives. Bellicum went on to state that BPX-501 showed a low incidence of transplant-related mortality, rapid immune recovery, and no serious adverse events associated with its use. Despite sharing a plethora of positive news about BPX-501, Bellicum hid from investors that a substantial risk of encephalopathy-a chronic, degenerative disease of the brain-was associated with the drug. The truth came to light on January 30, 2018, when Bellicum announced that it received notice from the U.S. Food and Drug Administration that studies of BPX-501 have been placed on a clinical hold following three cases of encephalopathy possibly related to BPX-501. On this news, Bellicum’s stock fell $2.12 per share, or over 25%, to close at $6.08 per share on January 31, 2018.