BioLineRx Ltd. (BLRX) Misrepresented its Financial Fortitude and Ability to Bring its Drug to Market
A shareholder filed a class action on behalf of all investors who purchased or otherwise acquired BioLineRx Ltd. (NASDAQ: BLRX) American depository shares (“ADSs”) between February 23, 2021 and September 19, 2022, for violations of the Securities Exchange Act of 1934. BioLineRx is a pre-commercial stage biopharmaceutical company focused on oncology. One of its lead product candidates is Motixafortide for use in stem-cell mobilization for autologous bone marrow transplantation in multiple myeloma patients.
According to the complaint, during the class period, defendants touted the viability and efficacy of Motixafortide. On May 26, 2021, defendants announced “[w]e are working diligently to submit a New Drug Application to the FDA” and reaffirmed the submission multiple times during the class period. Defendants also made statements regarding its financial fortitude and ability to “extract maximum value from Motixafortide” while also “advancing our other pipeline programs.”
In reality, however, BioLineRx was not well financed to develop Motixafortide while simultaneously advancing other pipeline programs and would require a loan of up to $40 million plus a $15 million securities offering to facilitate the commercial launch of Motixafortide. When BioLineRx announced the news of the securities offering, its stock fell 33%, to close at $1.02 per share on September 19, 2022.
What’s Next: Similarly situated shareholders may be eligible to participate in the class action against BioLineRx Ltd. Shareholders who want to act as lead plaintiff for the class must file their papers by March 6, 2023. 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.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
