Emergent is a multinational specialty biopharmaceutical company that develops vaccines and antibody therapeutics for infectious diseases, oncology and autoimmune disorders, and provides medical devices for biodefense purposes. Emergent's anthrax vaccine, BioThrax (Anthrax Vaccine Adsorbed) ("BioThrax"), is the only Anthrax vaccine licensed by the U.S. Food and Drug Administration ("FDA"). In September 2011, Emergent entered into a five-year procurement contract with the U.S. government for 44.75 million doses of BioThrax and by January 2016, Emergent reported it had sold out of its BioThrax and was expanding its BioThrax manufacturing facilities.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Emergent's business and financial prospects. Particularly, Emergent had no reason to believe that a renewal of its contract with the U.S. government would involve the same amount of purchases of BioThrax, but Emergent claimed it believed to receive the profitable renewal of its five-year exclusive anthrax vaccine procurement contract. Emergent also emphasized the demand for BioThrax was growing, that the U.S. government would fund Emergent's development of its BioThrax production facilities, and claimed with no reasonable basis that this development would allow Emergent to manufacture roughly 20 to 25 million additional doses of BioThrax annually, that the U.S. government would purchase over the following five-year period in order to build the U.S. Strategic National Stockpile ("SNS") of anthrax vaccine to 75 million doses. Following the defendants' materially false and misleading statements, Emergent stock traded at artificially inflated prices, reaching a Class Period high of $43.95 per share. This inflation enabled certain of the defendants to sell their personal shares of for proceeds of over $14.5 million.
Then on June 22, 2016, pre-market, Emergent revealed that the U.S. government had issued two official solicitation notices specifying that it would only be purchasing 29.4 million doses of the BioThrax vaccine, roughly one-third less than the 44.75 million doses in the first agreement and far under the 75 million doses that Emergent had led their investors to believe. Emergent also released that instead of more first-generation BioThrax anthrax vaccines, the U.S. government wanted newer and faster next-generation anthrax vaccines, and once one would be approved, bids would be placed to other companies and Emergent would lose its exclusivity. Following news, Emergent stock dropped roughly $8.00 per share to close at $31.33 on June 22, 2016.
No Class has yet been certified in the above action. To discuss this action, or for any questions, please visit the firm's site: http://www.bgandg.com/#!ebs/jbu1a or contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email firstname.lastname@example.org. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Emergent, you have until September 19, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
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Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
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