Robbins Arroyo LLP: Arrowhead Pharmaceuticals, Inc. (ARWR) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Arrowhead Pharmaceuticals, Inc. (NASDAQGS: ARWR) in the U.S. District Court for the Central District of California. The complaint is brought on behalf of all purchasers of Arrowhead securities between May 11, 2015 and November 8, 2016, for alleged violations of the Securities Exchange Act of 1934 by Arrowhead’s officers and directors. Arrowhead, a biopharmaceutical company, develops novel drugs to treat intractable diseases in the United States. The company’s lead clinical candidate is known as ARC-520, which is designed to treat chronic hepatitis B virus (“HBV”) infection.
Arrowhead Accused of Overstating Commercial Viability of Its Drug
According to the complaint, Arrowhead submitted several filings with the U.S. Securities and Exchange Commission in which the company discussed its ARC-520 study, stating that there were “no dose-limiting toxicities or serious adverse events having been observed to date.” The company further stated that ARC-520 was well tolerated and that it led to robust, sustained anti-viral effects in chimpanzees with chronic HBV. Arrowhead also noted that 78% of chronically HBV-infected chimpanzees treated with ARC-520 in combination with nucleoside analogs exhibited signs of immune reactivation, a necessary step for achieving a cure of chronic HBV. The company said that these data strongly support advancement of ARC-520 into Phase 2 and later-stage clinical studies.
However, the complaint alleges that Arrowhead officials failed to disclose that: (i) ARC-520 was fatal at certain doses; (ii) consequently, the U.S. Food and Drug Administration (“FDA”) was unlikely to approve ARC-520 as a hepatitis B treatment; and (iii) Arrowhead had overstated the approval prospects and commercial viability of ARC-520. On November 8, 2016, Arrowhead announced that the FDA would be placing a clinical hold on the company’s clinical study of ARC-520, likely due to deaths at the highest dose of an ongoing non-human primate toxicology study. On this news, Arrowhead stock fell $1.91 per share, or 31.26%, to close at $4.20 per share on November 9, 2016.
Arrowhead 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.
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