Robbins LLP: Nymox Pharmaceutical Corporation (NYMX) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that an investor of Nymox Pharmaceutical Corporation (NASDAQ: NYMX) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New Jersey. The complaint alleges that the company and certain of its officers and directors violated the Securities Act of 1934 in connection with Nymox’s misstatements regarding the viability of its proprietary drug NX-1207 for the treatment of benign prostatic hyperplasia (“BPH”). Nymox is engaged in the research and development of therapeutics and diagnostics, with an emphasis on products for the unmet needs of the aging population.
Nymox Is Accused of Misleading Investors Regarding Its Proprietary Drug NX-1207
According to the complaint, NX-1207 showed positive results for the treatment of BPH in Phase 1 and Phase 2 clinical trials in the United States. However, surprising the market and contrary to prior positive statements concerning Phase 3 clinical trials of NX-1207, defendants disclosed on November 2, 2014, that the Company’s two Phase 3 U.S. studies of NX-1207 had to be halted because the drug failed to meets its primary endpoints for efficacy. On November 3, 2014, defendants held a conference call with analysts to explain the failure and disclosed to the market for the first time the difficulties they faced in enrolling men for the trials and keeping them enrolled for the required length of time, and the subjective nature of the measurement of the drug’s success, which meant there was no scientifically acceptable basis for predicting the results in any subsequent trial using a different patient population. The market’s reaction was immediate and dramatic as the price of Nymox common stock fell 82% to close at $0.93 on unprecedented trading volume of 19.6 million shares. The Company’s U.S. BPH program is currently on hold pending further evaluation of data.
Nymox 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.