NEW YORK, Aug. 12, 2016 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Keryx Biopharmaceuticals, Inc. ("Keryx" or the "Company") (NASDAQ: KERX) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 16-cv-06233, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Keryx securities between February 25, 2016 and July 29, 2016 inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Keryx securities during the Class Period, you have until October 3, 2016 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Keryx is a biopharmaceutical company focused on marketing therapies for patients with renal disease. The Company's product, Auryxia (ferric citrate), also known as Riona in Japan and Fexeric in Europe, is an oral, absorbable iron-based compound, that received marketing approval from the U.S. Food and Drug Administration ("FDA") in September 2014 for the control of serum phosphorus levels in patients with chronic kidney disease ("CKD") on dialysis.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company was experiencing production-related difficulties in converting API to finished drug product; (ii) the foregoing difficulties were resulting in decreased production yields of finished drug product; (iii) consequently, the Company would exhaust its reserve of finished drug product; and (iv) as a result of the foregoing, Defendants' statements about Keryx's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On August 1, 2016, pre-market, Keryx announced that it had determined that a supply interruption of Auryxia was going to occur due to a production-related issue in converting active pharmaceutical ingredient ("API") to finished drug product at its contract manufacturer. The Company also disclosed that this issue has resulted in variable production yields of finished drug product, and that as a result, the Company had exhausted its reserve of finished drug product. Finally, the Company stated that it expects to restore adequate supply of Auryxia and make Auryxia available to patients during the fourth quarter of 2016.
On this news, Keryx's stock price fell $2.64 per share, or 35.8%, to close at $4.72 per share on August 1, 2016, on unusually heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP