Pomerantz LLP announces that a class action lawsuit has been filed against Aratana Therapeutics, Inc. (“Aratana” or the “Company”) and certain of its officers. The class action, filed in the United States District Court, Southern District of New York, is on behalf of a class consisting of investors who purchased or otherwise acquired Aratana securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
Aratana Therapeutics, Inc. is a development-stage biopharmaceutical company that develops biomedical therapeutics for animals. The Company offers various products to treat pain and inflammation associated with serious medical conditions in pets. One of the Company’s key products is ENTYCE, also known as AT-002 (capromorelin oral solution), an appetite stimulant for dogs.
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) Aratana did not have manufacturing contracts in place sufficient to support manufacturing of ENTYCE at a commercial scale; (ii) consequently, ENTYCE was not likely to be commercially available until late 2017; (iii) accordingly, Aratana had misled investors with respect to the likely timeline for a commercial launch of ENTYCE; and (iv) as a result of the foregoing, Aratana’s public statements were materially false and misleading at all relevant times.
On February 6, 2017, Aratana disclosed that the Center for Veterinary Medicine (“CVM”) had requested more information about ENTYCE. Aratana advised investors that the CVM’s request was “in connection with the Company’s post-approval supplement request to transfer the manufacturing of ENTYCE to a new vendor in order to produce ENTYCE at a commercial scale” and that the Company “now anticipates that ENTYCE . . . will be commercially available by late 2017.”
On this news, Aratana’s share price fell $1.44, or 17.93%, to close at $6.59 on February 6, 2017.