Puma Biotechnology, Inc.
Robbins Arroyo LLP: Puma Biotechnology, Inc. (PBYI) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Puma Biotechnology, Inc. (NasdaqGS: PBYI) in the United States District Court for the Central District of California. The complaint is brought on behalf of all purchasers of Puma securities between February 29, 2016 and May 4, 2017, for alleged violations of the Securities Exchange Act of 1934 by Puma’s officers and directors. Puma, a biopharmaceutical company, focuses on the development and commercialization of products to improve cancer care. Puma acquired the rights to license a drug known as drug PB272 (“neratinib”) in 2011.
Puma Accused of Overstating Approval Prospects for Its Drug
According to the complaint, on February 29, 2016, Puma filed its 2015 Form 10-K with the U.S. Securities and Exchange Commission, stating, “Based on pre-clinical studies and clinical trials to date, we believe that neratinib may offer an advantage over existing treatments that are used in the treatment of patients with HER2-positive metastatic breast cancer…” However, the complaint alleges that Puma failed to disclose that it did not expect the U.S. Food and Drug Administration (“FDA”) to approve neratinib for the treatment of breast cancer and, as such, Puma had overstated the drug’s approval prospects and commercial viability. On May 4, 2017, Puma announced the resignation of Dr. Robert Charnas, the company’s Senior Vice President, Regulatory Affairs, effective as of May 15, 2017, nine days before the FDA’s scheduled review of neratinib. On May 5, 2017, Fox Business published an article stating that a large number of patients taking neratinib suffered from severe side effects, posing a safety risk for the drug. On this news, Puma’s stock price fell $5.85 per share, or approximately 16%, to close at $30.70 per share on May 5, 2017.
Puma Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.