Immunovant, Inc. (IMVT) Misled Shareholders About the Viability of its Drug Candidate IMVT-1401
According to a class action complaint filed on behalf of Immunovant shareholders, Health Sciences Acquisitions Corporation (HSAC) merged with Immunovant Sciences Ltd., a private biopharmaceutical company. As a result of the merger, HSAC acquired all shares of Immunovant Sciences and Immonvant Sciences became a wholly owned subsidiary of HSAC. HSAC then changed its name to Immunovant, Inc. The Company is developing IMVT-1401 for the treatment of Graves’ ophthalmopathy and for the treatment of warm autoimmune hemolytic anemia.
Between October 2, 2019 and February 2, 2021, defendants purportedly made false and/or misleading statements and/or failed to disclose that: (i) HSAC had performed inadequate due diligence into Immunovant Sciences prior to the merger; (ii) HSAC ignored safety issues associated with Immunovant Science’s drug candidate IMVT-1401; and (iii) IMVT-1401 was less safe than the Company had led investors to believe, which foreseeably diminished its prospects for regulatory approval, commercial viability and profitability.
On February 2, 201, Immunovant issued a press release announcing “a voluntary pause of dosing in its original clinical trials for IMVT-1401,” and disclosed that it “has become aware of a physiological signal consisting of elevated total cholesterol and LDL [low density lipoproteins] levels in IMVT-1401-treated patients.” On this news, Immunovant’s stock price fell $18.22 per share, or 42.08%, to close at $25.08 per share on February 2, 2021. The stock currently trades under $10.00 per share.
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