NEW YORK, Nov. 21, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Aeterna Zentaris, Inc. ("Aeterna" or the "Company") (Nasdaq:AEZS) and certain of its officers. The class action, filed in United States District Court, District of New Jersey, is on behalf of a class consisting of all persons or entities who purchased Aeterna securities between June 26, 2012 and November 5, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Aeterna securities during the Class Period, you have until January 12, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Aeterna is a specialty biopharmaceutical Company engaged in developing novel treatments in oncology and endocrinology. The Company's pipeline encompasses compounds at various stages of development, none of which are currently available for sale to the public. AEZS's primary drug development candidates include zoptarelin doxorubicin and MACRILENTM in oncology and endocrinology respectively.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and omissions concerning the safety and efficacy of the Company's drug MACRILEN, which was meant to serve as a diagnostic test for adult growth hormone deficiency ("AGHD"). However, contrary to Defendants' false and misleading statements, which caused the Company's common stock to trade at artificially inflated prices, AEZS' primary clinical trial failed to adequately prove that MACRILEN acted as an effective diagnostic test and, therefore, the U.S. Food and Drug Administration ("FDA") denied the Company's application to market the drug publicly. Upon disclosure of these material adverse facts, the Company's stock lost almost 50% of its value.
On November 6, 2014, the Company announced that it had received a Complete Response Letter ("CRL") from the FDA, advising that it would not approve the Company's MACRILEN NDA. The Company stated that the FDA's letter advised the Company that: "the planned analysis of the Company's pivotal trial did not meet its stated primary efficacy objective as agreed to in the Special Protocol Assessment agreement letter between the Company and the FDA." The CRL further raised issues related to the lack of complete and verifiable source data for determining whether patients were accurately diagnosed with AGHD. The FDA concluded that, "in light of the failed primary analysis and data deficiencies noted, the clinical trial does not by itself support the indication."
On this news, shares of Aeterna fell $0.64 per share, or more than 49.60%, to close at $0.65 per share on November 6, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.