NextCure, Inc. Class Action Lawsuit
- Company Name
- NextCure, Inc.
- Stock Symbol
- Class Period
- November 5, 2019 to July 14, 2020
- Southern District of New York
The NextCure, Inc. class action lawsuit charges NextCure, certain of its officers and directors, and the underwriters of NextCure’s November 2019 secondary public offering (the “SPO”) with violations of the Securities Act of 1933 and/or the Securities Exchange Act of 1934. The NextCure class action lawsuit seeks to represent purchasers of NextCure securities between November 5, 2019 and July 14, 2020, inclusive (the “Class Period”), and purchasers or acquirers of NextCure common stock pursuant or traceable to the Registration Statement issued in connection with the SPO. The NextCure class action lawsuit was commenced on September 21, 2020 in the Southern District of New York and is captioned Zhou v. NextCure, Inc., No. 20-cv-07772.
NextCure is a clinical-stage biopharmaceutical company that strives to discover and develop immune-oncology therapies. NC318 – NextCure’s principal product candidate – was said to be a first-in-class immunomedicine targeting a novel immunomodulatory receptor called Siglec-15, or S15, particularly in patients with advanced or metastatic solid tumors. NextCure had been developing NC318 using proceeds from a 2018 research and development collaboration agreement with Eli Lilly and Company.
The NextCure class action lawsuit alleges that during the Class Period and in the Registration Statement for the SPO, defendants misled investors with respect to the efficacy of and objective responses observed in patients treated with NC318 from NextCure’s Phase 1 Clinical Trial. Had the alleged truth been revealed, the market would have seen that NC318 was not, in fact, effective in treating most tumor types, that the NC318 application was proving to be limited (if even useful at all), and, as a result, that there was a significant realizable risk that NC318 would not be nearly as popular as then-existing blockbuster drugs such as Keytruda.
On January 13, 2020, in a current report filed on Form 8-K with the U.S. Securities and Exchange Commission, NextCure announced that Eli Lilly had ended its deal with NextCure. On this news, NextCure’s stock price fell more than 8%.
Then, on July 13, 2020, NextCure announced that NextCure was no longer planning to “advance the non-small cell lung cancer (NSCLC) and ovarian cancer cohorts in the stage 2 portion of the Simon 2-stage trial,” citing “clinical response data” and “current enrollment criteria.” The July 13, 2020 announcement continued, stating, in relevant part: “The analysis of biomarker data for these cohorts has been delayed and is not yet complete. The company will evaluate whether to pursue additional monotherapy studies in NSCLC and ovarian cancer after a review of that information.” NextCure also announced that NextCure’s Chief Medical Officer, defendant Kevin N. Heller, M.D., had resigned. On this news, the price of NextCure’s shares fell more than 54%, further damaging investors.
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