Robbins Arroyo LLP: SCYNEXIS, Inc. (SCYX) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against SCYNEXIS, Inc. (NASDAQGM: SCYX) in the U.S. District Court for the District of New Jersey. The complaint is brought on behalf of all purchasers of SCYNEXIS securities pursuant to the company’s initial public offering (“IPO”) on May 2, 2014, and/or on the open market between May 4, 2014 and March 2, 2017, by SCYNEXIS’s officers and directors. SCYNEXIS, a pharmaceutical company, develops and commercializes novel anti-infectives to address unmet therapeutic needs. The company’s lead product candidate, known as SCY-078, is designed to treat invasive fungal infections in humans.
SCYNEXIS Accused of Hiding Health and Safety Risks of Its Drug
According to the complaint, on May 2, 2014, SCYNEXIS completed its IPO, issuing 6.2 million shares at $10 per share, raising net proceeds of approximately $62 million. In a series of subsequent filings with the U.S. Securities and Exchange Commission, SCYNEXIS emphasized that SCY-078 was “shown to be sufficiently safe and well-tolerated in multiple Phase 1 studies to support progression to Phase 2 studies.” The company further emphasized that SCY-078 had the potential to offer a new therapeutic option to treat fungal infections, and noted that the majority of reported adverse events had been transient and mild to moderate in intensity. However, the complaint alleges that SCYNEXIS officials failed to disclose that SCY-078 entailed substantial undisclosed health and safety risks and consequently, the company had overstated the drug’s approval prospectus and commercial viability.
On March 2, 2017, SCYNEXIS issued a press release announcing that the U.S. Food and Drug Administration (“FDA”) had informed the company to hold the initiation of any new clinical studies using the IV formulation of SCY-078 until the FDA reviewed all available pre-clinical and clinical data of the IV formulation of SCY-078. SCYNEXIS further revealed that the clinical hold decision was issued following a review of three mild-to-moderate thrombotic events in healthy volunteers receiving SCY-078 at the highest doses and highest concentrations in a Phase 1 study. On this news, SCYNEXIS’s stock fell $0.57 per share, or 17.43%, to close at $2.70 per share on March 3, 2017.
SCYNEXIS Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.