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AnaptysBio, Inc. Class Action Lawsuit

Case Summary

Company Name
AnaptysBio, Inc.
Stock Symbol
ANAB
Class Period
October 10, 2017 to November 7, 2019
Court
Southern District of California

The AnaptysBio, Inc. securities class action lawsuit charges AnaptysBio and certain of its current and former officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of AnaptysBio common stock between October 10, 2017 and November 7, 2019 (the “Class Period”).  The AnaptysBio securities class action lawsuit was commenced on March 25, 2020 in the Southern District of California and is captioned City of Hallandale Beach Police Officers' and Firefighters' Personnel Retirement Trust v. AnaptysBio, Inc., No. 20-cv-00565.

AnaptysBio is a clinical stage biotechnology company focused on the discovery and development of drugs for the treatment of inflammation and immuno-oncology conditions with unmet medical needs.  During the Class Period, AnaptysBio’s lead drug asset was etokimab, a drug intended for the treatment of various inflammatory diseases.

The AnaptysBio securities class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements regarding the purported efficacy of etokimab, touting data from AnaptysBio’s Phase 2a trial in peanut allergies as showing a “remarkable efficacy result” and describing the drug as having a “pretty profound efficacy” in its treatment of patients with atopic dermatitis based on AnaptysBio’s Phase 2a trial data for that indication.  In truth, defendants provided misleading clinical trial data which failed to disclose key information and used questionable analysis, making the trial results regarding etokimab’s efficacy and its prospects appear far better than they were.  As a result of defendants’ misrepresentations during the Class Period, the price of AnaptysBio common stock was artificially inflated, reaching a high of more than $125 per share.

The truth emerged through a series of disclosures, beginning on March 26, 2018, when an analyst from RBC Capital Markets issued a report that questioned the veracity of data from AnaptysBio’s interim analysis of its Phase 2a clinical trial for etokimab in adult patients with peanut allergies that AnaptysBio reported earlier that day.  In particular, the report revealed that the response rate for etokimab in the full trial population “does not appear to be meaningfully differentiated” relative to a placebo.  On this news, the price of AnaptysBio stock fell 6% to close at $107.52 per share on March 27, 2018.  Less than five months later, in August 2018, AnaptysBio abandoned its clinical pursuit of etokimab as a treatment for peanut allergies.

On June 21, 2019, an analyst from Credit Suisse issued a report questioning the reliability of AnaptysBio’s Phase 2a atopic dermatitis trial data.  Specifically, the Credit Suisse report questioned patients’ use of topical corticosteroids to supplement treatment of their symptoms as a rescue therapy during the study and criticized AnaptysBio’s failure to provide details on the timing of rescue therapy use or whether the subjects that utilized rescue therapy were classified as responders.  As a result of AnaptysBio’s misleading atopic dermatitis trial data, Credit Suisse was “now less certain about etokimab’s efficacy profile, particularly in atopic dermatitis.”  On this news, the price of AnaptysBio stock fell 12% to close at $59.24 per share on June 21, 2019. 

Then, on November 8, 2019, AnaptysBio announced “very disappoint[ing]” data from its ATLAS trial, a Phase 2b multi-dose study which evaluated the efficacy of etokimab in approximately 300 patients with moderate-to-severe atopic dermatitis.  Specifically, AnaptysBio disclosed that each of the etokimab dosing arms “failed to meet the primary endpoint of the trial” by not demonstrating statistically greater efficacy relative to a placebo.  As a result of these disclosures, the price of AnaptysBio common stock declined 72% to close at $10.18 per share on November 8, 2019.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: October 10, 2017 - November 7, 2019
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