Recro Pharma, Inc. (REPH) Accused of Misleading Investors About Its Drug’s Approval Prospects
According to the complaint, Recro Pharma, Inc. (REPH) made a series of positive statements about its IV meloxicam drug, emphasizing that it was well-tolerated and demonstrated a solid safety profile. Recro further stated that the drug showed significant reductions in pain and that it had the potential to be an “attractive non-opioid alternative for physicians and patients for the treatment of acute, postoperative pain.” Despite these encouraging statements, IV meloxicam lacked supporting clinical data to show sufficient clinical benefits in order to receive approval by the U.S. Food and Drug Administration (“FDA”). On May 24, 2018, Recro announced that the FDA declined to approve Recro’s New Drug Application for IV meloxicam because the analgesic effect didn’t meet the FDA’s expectations. On this news, Recro’s stock price fell over 54% to close at $5.63 per share on May 24, 2018, and continues to decline.
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