The complaint charges Keryx and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Keryx is a biopharmaceutical company that develops and markets treatments for renal disease. The Company's lead product, Auryxia (ferric citrate), is an oral, ferric iron-based compound that is used for the control of serum phosphorus levels in patients with chronic kidney disease on dialysis. Keryx commenced its commercial launch of Auryxia in the United States in December 2014.
The complaint alleges that during the Class Period, defendants misrepresented and failed to disclose material adverse facts regarding the Company's business and prospects, which were known to defendants or recklessly disregarded by them, including that: (a) the Company's sole third-party contract manufacturer for Auryxia was experiencing manufacturing difficulties that would require it to cease manufacture of Auryxia while the problems were rectified; (b) without that contract manufacturer manufacturing Auryxia, Keryx would not have enough inventory of Auryxia to meet its projected sales guidance; (c) Keryx was attempting to get another third-party manufacturer for Auryxia approved by the FDA, but that approval would not come until at least November 2016; and (d) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its business and financial prospects, and its ability to meet its 2016 guidance during the Class Period.
On August 1, 2016, Keryx issued a press release and conducted a conference call with investors and stock analysts. During the call, Keryx announced that due to previously undisclosed manufacturing and supply issues, the Company was facing an imminent supply interruption for Auryxia until at least October 2016 and it was withdrawing its fiscal 2016 guidance. Keryx also disclosed that it would not be able to get its second contract manufacturer approved by regulators until at least November 2016. On this news, the market price of Keryx common stock declined precipitously, falling $2.64 per share, or 36%, from its close of $7.36 per share on July 29, 2016 to close at $4.72 per share on August 1, 2016, on unusually high trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Keryx common stock during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is widely recognized as one of the leading law firms advising U.S. and international institutional investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history and was ranked first in both the total amount and number of shareholder class action recoveries in ISS's SCAS Top 50 Report for the last two years. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm's clients. Robbins Geller not only secures recoveries for defrauded investors, it also strives to implement corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit rgrdlaw.com/cases/keryx/ for more information.
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SOURCE Robbins Geller Rudman & Dowd LLP