SAN DIEGO & BELTSVILLE, Mass.--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that an investor of NextCure, Inc. (NASDAQ: NXTC) filed a class action against the Company for: (i) alleged violations of the Securities Exchange Act of 1934 between November 5, 2019 and July 14, 2020; and (ii) pursuant to the Securities Act of 1933 for misstatements in connection with its November 2019 secondary public offering ("SPO"). NextCure is a clinical-stage biopharmaceutical company that develops immune-oncology therapies. Its leading treatment candidate, NC318, targets a novel immunomodulatory receptor, called Siglec-15, or S15, particularly in patients with advanced or metastatic solid tumors.
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NextCure, Inc. (NXTC) Accused of Misleading Shareholders
According to the complaint, during the class period, defendants misled investors regarding the efficacy of and objective responses observed in patients treated with NC318 from the Company's Phase 1 Clinical Trial. Specifically, on November 5, 2019, NextCure made positive statements regarding its Phase 1 Clinical Trial in connection with the 34th Annual Meeting of Society for Immunotherapy of Cancer, reporting a disease control rate of 71% while committing to present results for the 43 patients dosed with NC318. According to the media and analysts, "expectations for NextCure and NC 318 [] soar[ed] because … NC318 could become as popular as [Merck's blockbuster drug] Keytruda if clinical trial results continue to impress." On this news, NextCure's stock closed at $92.22 per share, up nearly 250% from the previous day's close.
On November 19, 2019, NextCure closed its SPO, raising $172.2 million in gross proceeds. The offering documents touted the efficacy and effectiveness of NC318.
Then, on July 13, 2020, NextCure announced the departure of its Chief Medical Officer and that it 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." On this news, analysts slashed price targets from as high as $87 to as low as $13. As a result, NextCure's shares dropped over 54% the next trading day to close at $8.15 per share on July 13, 2020.
If you purchased shares of NextCure (NXTC) between November 5, 2019 and July 14, 2020, you have until November 20, 2020, to ask the court to appoint you lead plaintiff.
Contact us to learn more:
Lauren Levi
(800) 350-6003
llevi@robbinsllp.com
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