Acelyrin, Inc. (SLRN) Misled Investors Regarding its Lead Product Candidate
A shareholder filed a class action lawsuit on behalf of persons and entities that purchased or otherwise acquired Acelyrin, Inc. (NASDAQ: SLRN) securities between May 4, 2023 and September 11, 2023. Acelyrin is a clinical biopharma company that focuses on developing and commercializing transformative medicines. The Company’s lead product candidate is izokibep, a small protein therapeutic designed to inhibit IL-17A with purportedly high potency, which is currently in Part B of a Phase 2b/3 clinical trial for use in the treatment of moderate to severe Hidradenitis Suppurativa (“HS”).
According to the complaint, during the class period, defendants failed to disclose that: (i) izokibep was less effective in treating HS than defendants had led investors to believe; (ii) accordingly, Acelyrin overstated izokibep’s clinical and/or commercial prospects; (iii) as a result, Acelyrin also overstated the Company’s business prospects post-IPO; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Plaintiff alleges that on September 11, 2023, after the markets closed, Acelyrin announced disappointing top-line results from Part B of the Phase 2b/3 trial evaluating izokibep for the treatment of moderate-to-severe HS. Specifically, izokibep failed to show statistically significant reduction in abscesses and inflammatory nodules in patients as compared to placebo. On this news, Acelyrin’s stock price fell $17.19 per share, or 61.61%, over the following two trading sessions, to close at $10.71 per share on September 13, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Acelyrin, Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by January 16, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.