Pomerantz LLP announces that a class action lawsuit has been filed against SCYNEXIS, Inc. (“Scynexis” or the “Company”) and certain of its officers. The class action, filed in United States District Court, District of New Jersey, and docketed under 17-cv-01565, is on behalf of a class consisting of investors who purchased or otherwise acquired Scynexis securities: (1) pursuant and/or traceable to Scynexis’ false and misleading Registration Statement and Prospectus, issued in connection with the Company’s initial public offering on or about May 2, 2014 (the “IPO” or the “Offering”); and/or (2) on the open market between May 2, 2014 and March 2, 2017, both dates inclusive (the “Class Period”), seeking to recover damages caused by defendants’ violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Scynexis, Inc. is a pharmaceutical company that develops and distributes intravenous drugs for the treatment of serious and life-threatening invasive fungal infections in humans.
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) Scynexis’s lead product SCY-078 entailed substantial undisclosed health and safety risks; (ii) consequently, the Company had overstated the drug’s approval prospectus and/or commercial viability; and (iii) as a result of the foregoing, Scynexis’s public statements were materially false and misleading at all relevant times.
On March 2, 2017, post-market, Scynexis issued a press release, attached as Exhibit 99.1 on Form 8-K, entitled “Scynexis delays initiation of new clinical studies using the IV formulation of SCY-078 at FDA’s request,” announcing the FDA’s clinical hold on clinical trials for the intravenous formulation of the Company's lead product candidate SCY-078. The Company stated that “[t]he clinical hold decision was issued by the FDA following a review of three mild-to-moderate thrombotic events in healthy volunteers receiving the IV formulation of SCY-078 at the highest doses and highest concentrations in a Phase 1 study.” On this news, Scynexis’s share price fell $0.57, or 17.43%, to close at $2.70 on March 3, 2017.