NEW YORK, May 22, 2018 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Celgene Corporation (“Celgene” or the “Company”) (NASDAQ: CELG ) of the May 29, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Celgene stock or options between September 12, 2016 and February 27, 2018 and would like to discuss your legal rights, click here : www.faruqilaw.com/CELG. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26 th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased Celgene common stock between September 12, 2016 and February 27, 2018 (the “Class Period”). The case, City Of Warren General Employees' Retirement System v. Celgene Corporation et al., No. 2:18-cv-04772 was filed on March 29, 2018, and has been assigned to Judge John Michael Vazquez.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: 1) the CD-001 interim endoscopy trial suffered from fatal design defects, including insufficient patient size and lack of a placebo control arm; 2) GED-0301 had failed to demonstrate meaningful clinical efficacy through the interim endoscopy trial because of the trial’s design defects; 3) non-public interim trial data received and analyzed by Celgene and its representatives demonstrated GED-0301’s lack of efficacy. As a result of the forgoing, there was an undisclosed risk and high likelihood that Celgene would be unable to develop GED-0301 into a commercially viable treatment for Crohn’s disease.
On October 19, 2017, the Company issued a press stating that Celgene would be discontinuing the GED-0301 trials for the treatment of Crohn’s disease following a futility analysis by an independent Data Monitoring Committee.
On this news, Celgene’s share price fell from $135.96 per share on October 19, 2017 to a closing price of $121.33 on October 20, 2017—a $14.63 or a 10.76% drop.
Then, on October 26, 2017, Celgene released its third quarter 2017 results, revealing that certain key drugs had missed expectations for the quarter. Most notably, sales for Otezla slowed to only 2% U.S. growth, compared to 41% year-over-year U.S. growth the prior quarter. The Company also posted only an 87% increase in international sales, far below the “greater than 100% clip” touted by Company representatives at the end of the quarter.
Following the release, Celgene’s share price fell from $119.56 per share on October 25, 2017 to a closing price of $99.99 on October 26, 2017—a $19.57 or a 16.37% drop.
Then, on February 27, 2018, after the market closed, Celgene issued a press release revealing that the FDA had sent a Refusal to File letter for the Company’s NDA for Ozanimod. The release stated that both the clinical and nonclinical pharmacology data were insufficient to even permit a complete review by the FDA.
After the announcement, Celgene’s share price fell from $95.78 per share on February 27, 2018 to a closing price of $87.12 on February 28, 2018—a $8.66 or a 9.04% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Celgene’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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