Seres Therapeutics, Inc.
Robbins Arroyo LLP: Seres Therapeutics, Inc. (MCRB) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Seres Therapeutics, Inc. (NASDAQGS: MCRB) in the U.S. District Court for the District of Massachusetts. The complaint is brought on behalf of all purchasers of Seres securities between June 25, 2015 and July 29, 2016, for alleged violations of the Securities Exchange Act of 1934 by Seres’s officers and directors. Seres, a microbiome therapeutics platform company, focuses on the development of biological drugs designed to restore health by repairing the function of a dysbiotic microbiome. The company’s lead product candidate is SER-109, a clinical-stage oral microbiome therapeutic designed to prevent further recurrences of Clostridium difficile infection (“CDI”), a debilitating infection of the colon.
Seres Accused of Misrepresenting the Efficacy of Its Drug
According to the complaint, on September 8, 2014, Seres announced final data from its Phase 1b clinical trial of SER-109, which yielded positive results including clinical cures and a favorable safety profile. Seres proceeded to Phase 2 of the clinical trial to further evaluate the efficacy of SER-109. Meanwhile, the company shed SER-109 in a positive light, stating that it believed SER-109 would enable it “to provide a more effective and safer treatment for preventing the recurrence of CDI than the current standard of care.” Seres subsequently issued a press release announcing positive first quarter 2015 financial results, stating that it had “made significant progress this quarter to advance our mission of delivering Ecobiotic microbiome medicines to patients” and that its successful initial public offering indicated confidence in the company’s science and data to date.
However, the complaint alleges that Seres officials misrepresented the efficacy of SER-109 and its attendant capacity for approval by the U.S. Food and Drug Administration, as well as the structure of the Phase 2 trial. Seres management was allegedly aware that enrollment rates in the parallel open-label study of SER-109 were not performing well in the Phase 2 trial, and that formulation changes had been made to the Phase 2 trial which could affect the clinical cure rate of SER-109. On July 29, 2016, Seres disclosed that SER-109 had failed to reach its primary endpoint of reducing the relative risk of CDI recurrence at up to 8 weeks when compared to a placebo. Specifically, CDI recurrence occurred in 44% of subjects who received SER-109, compared to 53% of subjects who received a placebo. The company further stated that the relative risk of CDI recurrence for the placebo population compared to the SER-109 population was not statistically significant. On this news, Seres stock declined more than 70% to close at $9.73 per share on August 1, 2016.
Seres 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.