Homology Medicines, Inc. (FIXX) Misled the Investing Public Regarding its Lead Drug Candidate HMI-102
A shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Homology Sciences, Inc. (NASDAQ: FIXX) securities between June 10, 2019 and February 18, 2022, for violations of the Securities Exchange Act of 1934. Homology is a genetic medicines company that focuses on transforming the lives of patients suffering from rare genetic diseases. The Company’s lead product candidate is HMI-102, a gene therapy for the treatment of phenylketonuria (PKU) in adults.
According to the complaint, on June 10, 2019, Homology announced it had commenced enrollment of the HMI-102 Trial. Throughout the class period, defendants touted the progress of the trial and the efficacy of the therapy. However, these statements were false. Defendants failed to disclose that the Company had overstated HMI-102’s efficacy and risk mitigation, and therefore, it was unlikely the Company would be able to commercialize HMI-102 in its present form.
On February 18, 2022, Homology issued a press release disclosing that “the U.S. Food and Drug Administration (FDA) has notified the company that its pheNIX gene therapy trial of HMI-102 in adults with phenylketonuria (PKU) has been placed on clinical hold due to the need to modify risk mitigation measures in the study in response to observations of elevated liver function tests” and that “[t]he Company expects to receive an official clinical hold letter within 30 days.” On this news, Homology’s stock price fell $1.26 per share, or 32.64%, to close at $2.60 per share on February 22, 2022.
Next Steps: If you acquired shares of Homology Medicines, Inc. (FIXX) between June 10, 2019 and February 18, 2022, you have until May 24, 2022, to ask the court to appoint you lead plaintiff for the class. 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.