NRx Pharmaceutical, Inc. (NRXP) Misled Investors Regarding the EUA Status of its Drug Candidate
A shareholder filed a class action on behalf of all persons who purchased or otherwise acquired NRx Pharmaceuticals, Inc. (NASDAQ: NRXP) securities between June 1, 2021 and November 4, 2021, for violations of the Securities Exchange Act of 1934. NRx is a clinical-stage pharmaceutical company that develops therapeutics for the treatment of central nervous system disorders and life-threatening pulmonary diseases. The Company’s products include, among others, ZYESAMI, an investigational pre-commercial drug for COVID-19 related respiratory failure.
According to the complaint, in June 2021, NRx announced it had filed an application with the U.S. Food and Drug Administration (“FDA”) requesting Emergency Use Authorization (“EUA”) for ZYESAMI to treat critically ill COVID-19 patients suffering with respiratory failure. However, defendants failed to disclose that the ZYESAMI EUA application contained insufficient data regarding the potential benefits and risks of the drug and therefore, the FDA was unlikely to approve the ZYESAMI EUA application in its present form.
On November 4, 2021, NRx issued a press release “announc[ing] that the [FDA] has declined to issue an [EUA] for ZYESAMI® (aviptadil). The FDA stated that it was unable to issue the EUA at this time due to insufficient data regarding the known and potential benefits of the medicine and the known and potential risks of ZYESAMI in patients suffering from Critical COVID-19 with respiratory failure.” On this news, NRx’s stock price fell $2.27 per share, or over 25%, to close at $6.65 per share on November 5, 2021.
If you purchased shares of NRx Pharmaceutical, Inc. (NRXP) between June 1, 2021 and November 4, 2021, you have until March 21, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.