Philadelphia, Pennsylvania--(Newsfile Corp. - November 9, 2023) - Berger Montague advises investors that a securities fraud class action lawsuit has been filed against SCYNEXIS, Inc. ("Scynexis") (NASDAQ: SCYX) on behalf of purchasers of Scynexis's securities between March 31, 2023 and September 22, 2023, inclusive (the "Class Period").
Investor Deadline: Investors who purchased or acquired Scynexis securities during the Class Period may, no later than January 8, 2024, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (267) 637-3176, or Andrew Abramowitz at [email protected] or (215) 875-3015 or CLICK HERE.
Scynexis is a biotechnology company primarily engaged in the development of ibrexafungerp, an intravenous/oral agent for fungal indications. Scynexis received approval from the U.S. Food and Drug Administration ("FDA") for the use of ibrexafungerp tablets, distributed under the brand name BREXAFEMME®, for the treatment of vulvovaginal candidiasis.
On March 30, 2023, Scynexis entered into a license agreement with GSK plc for an exclusive license for the development, manufacture, and commercialization of ibrexafungerp, including the approved product BREXAFEMME, for all indications, in all countries other than Greater China and certain other countries.
The Class Period commences on March 31, 2023, when Scynexis filed a Form 10-K for the period ended December 31, 2022 (the "2022 10-K"). The 2022 10-K attested to the fact that, "as of December 31, 2022, our disclosure controls and procedures were effective at the reasonable assurance level."
However, the truth was revealed on September 25, 2023, when Scynexis announced that it "became aware that a non-antibacterial beta-lactam drug substance is manufactured using equipment common to the manufacturing process for ibrexafungerp." As a result, Scynexis recalled BREXAFEMME® (ibrexafungerp tablets) from the market and put a temporary hold in ibrexafungerp clinical studies "until a mitigation strategy and a resupply plan are determined."
Following this news, Scynexis's shares fell $1.13, or 34.14%, to close at $2.18 per share on September 25, 2023. The stock price continued to fall the next trading session by 11.47% to close at $1.93 per share on September 26, 2023.
According to the complaint and throughout the Class Period, the defendants failed to disclose to investors that: (1) the equipment used to manufacture ibrexafungerp was also used to manufacture a non-antibacterial beta-lactam drug substance, presenting a risk of cross- ontamination; (2) Scynexis did not have effective internal controls and procedures, as well as adequate internal oversight policies to ensure that its vendor complied with current Good Manufacturing Practices (cGMP); and (3) due to the substantial risk of cross-contamination, Scynexis was reasonably likely to recall its ibrexafungerp tablets and halt its clinical studies.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
James Maro, Senior Counsel
Andrew Abramowitz, Senior Counsel
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