NEW YORK, Sept. 7, 2016 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/keryx/) previously announced that a class action complaint was filed in the United States District Court for the Southern District of New York, captioned Erickson v. Keryx Biopharmaceuticals, Inc., No. 16-cv-06218, on behalf of purchasers of Keryx Biopharmaceuticals, Inc. ("Keryx" or the "Company") (NASDAQ: KERX) common stock during the period between March 2, 2016 and July 29, 2016, inclusive (the "Class Period").
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 violated the Securities Exchange Act of 1934 by misrepresenting and failing 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) Keryx was relying upon a sole third-party contract manufacturer for Auryxia that was experiencing manufacturing difficulties that could require that third-party manufacturer to cease manufacture of Auryxia while manufacturing problems were rectified; (b) without that sole third-party 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 manufacturer would not be approved 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 analysts during which the Company revealed an imminent interruption in the supply of Auryxia until at least October 2016 due to previously undisclosed manufacturing and supply issues, forcing Keryx to withdraw 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 36% from its prior closing price on unusually high trading volume.
As Healthcare Industry analyst Brian Feroldi recently lamented in a September 6, 2016 report to investors: "[W]e don't yet know how providers will respond to the news of manufacturing issues with Auryxia, so it's possible that the strong prescription growth we saw in the second quarter is about to come to a screeching halt." As a result, the price of Keryx common stock remains depressed, erasing tens of millions of dollars of market capitalization for those who purchased Keryx stock at artificially inflated prices during the Class Period.
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.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from August 2, 2016. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman, David A. Rosenfeld or Andrew L. Schwartz of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed online at http://www.rgrdlaw.com/cases/keryx/. 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.
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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