Odonate Therapeutics, Inc. Class Action Lawsuit
- Company Name
- Odonate Therapeutics, Inc.
- Stock Symbol
- Class Period
- December 7, 2017 to August 21, 2020
- Southern District of California
The Odonate Therapeutics, Inc. class action lawsuit charges Odonate and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Odonate securities between December 7, 2017 and August 21, 2020, inclusive (the “Class Period”). The Odonate class action lawsuit was commenced on September 16, 2020 in the Southern District of California and is captioned Kendall v. Odonate Therapeutics, Inc., No. 20-cv-01828.
Odonate is a pharmaceutical company that develops therapeutics for the treatment of cancer. Odonate is focused on developing tesetaxel, an orally administered chemotherapy agent. Tesetaxel is in a Phase 3 clinical study for patients with locally advanced or metastatic breast cancer (“MBC”), called the CONTESSA trial, which is evaluating tesetaxel in combination with capecitabine in patients with MBC.
The Odonate class action lawsuit alleges that during the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (i) tesetaxel was not as safe or well-tolerated as Odonate had led investors to believe; (ii) consequently, tesetaxel’s commercial viability as a cancer treatment was overstated; and (iii) as a result, Odonate’s public statements were materially false and misleading at all relevant times.
On August 24, 2020, Odonate issued a press release announcing top-line results from the CONTESSA trial. Although the study met its primary endpoint, tesetaxel plus capecitabine was associated with Grade 3 or higher neutropenia (low levels of white blood cells), which occurred in 71.2% of patients with the combination treatment versus 8.3% for capecitabine alone. Various other Grade 3 or higher treatment-emergent adverse events were also associated with tesetaxel plus capecitabine versus capecitabine alone. Further, discontinuation rates were 4.2% from neutropenia and 3.6% from neuropathy, and the overall discontinuation rate was 23.1% in the treatment group compared to 11.9% in the capecitabine alone group. On this news, Odonate’s stock price fell more than 45%, damaging investors.
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