SAN DIEGO & PALO ALTO, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Carbylan Therapeutics, Inc. (NASDAQGM: CBYL) violated federal securities laws in connection with its initial public offering ("IPO"). Carbylan Therapeutics is a specialty pharmaceutical company that develops and commercializes novel and proprietary combination therapies.
View this press release on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/carbylan-therapeutics-inc-may-2016
Carbylan Therapeutics Pursues Strategic Transaction Amid Financial Loss
On April 9, 2015, Carbylan held its IPO, selling 13 million shares of stock at $5.00 per share, raising $65 million in new capital. However, Carbylan's representations about its business metrics and financial prospects in its Registration Statement may have been misleading. Carbylan stock is currently trading at $1.10, down from its $9.00 high on June 9, 2015.
On February 2, 2016, Carbylan's stock lost nearly 50% of its value after announcing top-line results from a Phase 3 trial of COR1.1. Then, on April 15, 2016, Carbylan announced that it was suspending further clinical development of its pain relief product, Hydros–TA, and it is actively pursuing a merger or acquisition of the company. In conjunction with its plan, Carbylan announced an immediate reduction in its workforce of 14 of its current 17 employees to preserve capital and further streamline the company's operations in preparation for the strategic transaction.
On May 12, 2016, the company reported net losses of approximately $6.6 million and $5.2 million in the three months ended March 31, 2016 and 2015, respectively.
Carbylan Therapeutics Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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