RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP announces that it has filed an expanded securities fraud class action complaint against Celgene Corporation (Nasdaq: CELG) (“Celgene” or the “Company”) on behalf of investors who purchased the Company’s securities between January 12, 2015 and February 27, 2018, inclusive (the “Class Period”). This action, captioned Witchcoff v. Celgene Corp., et al., Case No. 18-08785 was filed in the United States District Court for the District of New Jersey and is related to a previously filed action, City of Warren General Employees’ Retirement System v. Celgene Corp., et al., Case No. 18-4772 (D.N.J.) (“City of Warren”).
Pursuant to the notice published on March 29, 2018, in connection with the filing of the first-filed City of Warren action, as required by the Private Securities Litigation Reform Act of 1995, investors who purchased Celgene securities during the Class Period may, no later than May 29, 2018, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this action please visit: https://www.ktmc.com/new-cases/celgene-corporation-2018#join
Celgene is a global biopharmaceutical company engaged primarily in the discovery, development, and commercialization of therapies for the treatment of cancer and inflammatory diseases. Among the Company’s core Inflammation and Immunology products is OTEZLA—a drug approved for the treatment of plaque psoriasis and psoriatic arthritis. Two of the Company’s leading development-stage Inflammation and Immunology products during the Class Period were ozanimod—a drug being developed for the treatment of relapsing multiple sclerosis, ulcerative colitis, and Crohn’s disease—and GED-0301—a drug being developed for the treatment of Crohn’s disease.
The Class Period begins on January 12, 2015, which coincides with the Company’s announcement of its 2015 and long-term financial outlook. Among other things, Celgene announced that it expected 2017 revenues from OTEZLA to be between $1.5 billion and $2.0 billion, and that it expected 2020 revenues from the entire Inflammation and Immunology division to exceed $3.0 billion.
On October 19, 2017, Celgene shocked the market by announcing that it was ending all ongoing trials of GED-0301, would no longer be pursuing GED-0301 as a treatment for Crohn’s disease, and would be recording a $1.6 billion impairment charge based on this decision. On this news, the price of Celgene common stock fell $14.63 per share, or nearly 11 percent, from a close of $135.96 per share on October 19, 2017, to a close of $121.33 per share on October 20, 2017.
On October 26, 2017, the Company shocked the market again by announcing that OTEZLA sales in the third quarter of 2017 were only $308 million—representing a 12 percent year-over-year increase—and that it was lowering 2017 OTEZLA net product sales expectations to “[a]pproximately $1.25B.” On this news, the price of Celgene common stock fell $19.57 per share, or more than 16 percent, from a close of $119.56 per share on October 25, 2017, to a close of $99.99 per share on October 26, 2017.
More recently, on February 27, 2018, the Company stunned investors a third time by announcing that it had received a Refusal to File letter from the FDA regarding its New Drug Application (“NDA”) for ozanimod. On this news, the price of Celgene common stock fell $8.66 per share, or more than 9 percent, from a close of $95.78 per share on February 27, 2018, to a close of $87.12 per share on February 28, 2018.
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: (i) Defendants failed to disclose known trends that were negatively impacting sales of OTEZLA; (ii) Defendants overstated the prospects of FDA approval for ozanimod to treat relapsing multiple sclerosis; (iii) Defendants overstated GED-0301’s commercial prospects as a treatment for Crohn’s disease; and (iv) as a result of the foregoing, Defendants’ statements about OTEZLA, ozanimod, and GED-0301 were materially false and/or misleading and/or lacked a reasonable basis.
Celgene investors who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (888) 299-7706 or at firstname.lastname@example.org.
Celgene investors may, no later than May 29, 2018, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.