Molecular Partners AG (MOLN) Misled Investors Regarding The Commercial Prospects of its Drug Candidates
A shareholder filed a class action on behalf of all persons who purchased or otherwise acquired Molecular Partners AG (NASDAQ: MOLN) American Depository Shares (ADS) in connection with the Company’s initial public offering (“IPO”) and/or between June 16, 2021 and April 26, 2022. Molecular Partners operates a clinical-stage biopharmaceutical company that focuses on the discovery, development, and commercialization of therapeutic proteins.
According to the complaint, leading up to and following the IPO Molecular Partners touted the clinical and commercial prospects of certain of its product candidates under development in collaboration with other companies. Two of these products include ensovibep as a treatment for COVID-19 in collaboration with Novartis AG, and MP0310 (AMG 506) for the treatment of certain types of cancer in collaboration with Amgen, Inc.
Molecular Partners held its IPO in June 2021, offering its ADSs at the IPO price of $21.25 per ADS. However, the documents in support of the IPO were negligently prepared. Specifically, defendants failed to disclose that ensovibep was less effective in treating COVID-19 than defendants led investors to believe, and therefore, the FDA would require an additional trial before granting the drug emergency use authorization. Waning global rates of COVID-19 also significantly reduced the Company’s chances of securing emergency approval. Further, the product candidate MP0310 was less attractive to Amgen than defendants led investors to believe, increasing the likelihood Amgen would return global rights of MP0310 to Molecular Partners, which it did in June 2022.
At each announcement of these setbacks, Molecular Partners’ ADS price declined. The stock now trades significantly below its IPO price.
Next Steps: If you acquired shares of Molecular Partners AG (MOLN) ADSs pursuant to the Company’s IPO or between June 16, 2021 and April 26, 2022, you have until September 12, 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.