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Investigations  /  07.05.2018

Edge Therapeutics, Inc.

Edge Therapeutics Inc. (EDGE) Accused of Misleading Investors About Its Lead Product Candidate

According to the complaint, Edge Therapeutics Inc. (EDGE) emphasized encouraging results from its Phase 3 NEWTON 2 futility analysis of EG-1962 and expected top-line results from the NEWTON 2 study in late 2018. Despite representing to investors that Edge was operationally and financially well-positioned to advance EG-1962 through key clinical milestones, including the company’s Phase 3 NEWTON 2 study, its drug did not perform as well as anticipated. On March 28, 2018, Edge revealed that it was stopping its NEWTON 2 study of EG-1962 because it had only a small chance of meeting its primary endpoint. On this news, Edge’s stock price fell $14.28 per share, or over 91%, to close at $1.31 per share on March 28, 2018, and continues to decline.

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