Corbus Pharmaceutical Holdings, Inc.
- Company Name
- Corbus Pharmaceutical Holdings, Inc.
- Stock Symbol
- Class Period
- November 14, 2016 to February 28, 2019
- Motion Deadline
- May 11, 2019
- District of Massachusetts
The complaint charges Corbus and certain of its officers with violations of the Securities Exchange Act of 1934. Corbus is a Phase 3 clinical-stage pharmaceutical company focused on the development and commercialization of novel therapeutics to treat inflammatory and fibrotic diseases. In November 2016, Corbus announced positive top-line results from its Phase 2 study of Lenabasum (formerly known as JBT-101, resunab and anabasum) for the treatment of diffuse cutaneous systemic sclerosis.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose material adverse facts about Lenabasum and Corbus’s Phase 2 study of the drug, including that Corbus had manipulated the study to conceal the fact that the results did not have statistical significance by, among other things, changing the primary efficacy endpoint of the study after the Company was unblinded to the results, extending the efficacy readout to 16 weeks, which was a full four weeks after patients were of the therapy; reporting a one-sided p value, not the traditional two-sided p value; and giving patients in the study who were healthier the Lenabasum instead of the placebo. As a result of this information being withheld from the market, the price of Corbus stock was artificially inflated to more than $10 per share during the Class Period.
Then on February 28, 2019, Seeking Alpha published an article regarding the Company and its lead drug candidate. The article stated that Lenabasum had “failed every previous clinical trial,” and that the Phase 2 trial was a “massive failure.” The article detailed how Corbus had changed the primary efficacy endpoint of the study, used a one-sided test, and “clearly enroll[ed] healthier patients” in the Phase 2 study. Following the release of the Seeking Alpha article, the price of Corbus common stock declined nearly 16%, to close at $6.94 per share on February 28, 2019.