Robbins LLP: Inotek Pharmaceuticals Corporation (ITEK) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Inotek Pharmaceuticals Corporation (NASDAQGM: ITEK) in the U.S. District Court for the District of Massachusetts. The complaint is brought on behalf of all purchasers of Inotek securities between July 23, 2015 and December 30, 2016, for alleged violations of the Securities Exchange Act of 1934 by Inotek’s officers and directors. Inotek, a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapies for glaucoma and other diseases of the eye in the United States. Inotek’s lead drug candidate for glaucoma is known as trabodenoson.
Inotek Accused of Lying About the Efficacy of Its Product
According to the complaint, on July 23, 2015, Inotek issued a press release announcing a positive End of Phase 2 meeting with the U.S. Food and Drug Administration and stating that the company was in the “final preparation stages to commence its first Phase 3 trial in 4Q and look forward to data in 2016.” The company touted an optimistic outlook of the Phase 3 trabodenoson trial, causing the company’s share price to increase dramatically to $15.37 per share on July 23, 2015. On March 23, 2016, the company reported operational highlights, noting that it had achieved several significant regulatory, clinical, and financial accomplishments, including the advancement of trabodenoson. Inotek’s Form 10-K filing further assured investors that trabodenoson was bound for success, stating that it has a favorable safety profile when compared to the currently available glaucoma treatments.
However, the complaint alleges that Inotek officials were aware that the pivotal portion of the clinical trial of trabodenoson would fail to achieve its primary endpoint of statistical relevance in the reduction of intraocular pressure compared with the placebo. The truth came to light on January 3, 2017, when Inotek issued a press release announcing that the first pivotal Phase 3 trial of trabodenoson for the treatment of primary open-angle glaucoma or ocular hypertension failed to achieve its primary endpoint of superiority in the reduction of intraocular pressure compared with the placebo at all 12 time points. On this news, Inotek’s stock fell approximately 70% to close at $1.75 per share on January 3, 2017.
Inotek 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.