1. ESSA Pharma faced a class action for misleading investors about drug efficacy. 2. The trial for masofaniten showed no clear benefits compared to enzalutamide alone. 3. Stock price dropped 73.08% after announcing Phase 2 termination of M-E Study. 4. The lawsuit represents all who acquired EPIX shares from Dec 2023 to Oct 2024. 5. Robbins LLP is facilitating the class action for affected investors.
The lawsuit and significant stock drop indicate a major loss of investor confidence.
The class action directly relates to EPIX's stock performance and credibility.
Immediate impacts are expected due to ongoing litigation and investor reactions.
/PRNewswire/ -- Robbins LLP informs investors that a class action was filed on behalf of all persons and entities that purchased or otherwise acquired ESSA Pharma Inc. (NASDAQ: EPIX) securities between December 12, 2023 and October 31, 2024. ESSA is a clinical stage pharmaceutical company that focuses on the development of small molecule drugs for the treatment of prostate cancer. The Company's lead product candidate was masofaniten, which was in clinical trial in combination with enzalutamide compared with enzalutamide alone in patients with metastatic CRPC.
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Robbins LLP is Investigating Allegations that ESSA Pharma Inc. (EPIX) Misled Investors Regarding the Efficacy of its Drug Candidate Masofaniten.
According to the complaint, during the class period, defendants failed to disclose to investors that: (i) masofaniten in combination with enzalutamide had no clear efficacy benefit over enzalutamide alone; (ii) accordingly, masofaniten in combination with enzalutamide was less effective in treating prostate cancer than defendants had led investors to believe; (iii) the M-E Combination Study was unlikely to meet its prespecified Phase 2 primary endpoint; and (iv) accordingly, defendants had overstated masofaniten's clinical, regulatory, and commercial prospects.
The complaint alleges that on October 31, 2024, ESSA issued a press release announcing its decision to terminate Phase 2 of the M-E Combination Study, citing "a protocol-specified interim review of the safety, PK [pharmacokinetics] and efficacy data, which showed a much higher rate of PSA90 response in patients treated with enzalutamide monotherapy . . . than were expected based upon historical data" and "no clear efficacy benefit seen with the combination of masofaniten plus enzalutamide compared to enzalutamide single agent." The Company further advised that "a futility analysis determined a low likelihood of meeting the prespecified primary endpoint of the study" and that, "[a]s part of the effort to focus its resources," it was "planning to terminate the other remaining company-sponsored and investigator-sponsored clinical studies evaluating masofaniten either as a monotherapy or in combination with other agents." On this news, ESSA's stock price fell $3.80 per share, or 73.08%, to close at $1.40 per share on November 1, 2024.
You may be eligible to participate in the class action against ESSA Pharma Inc. Shareholders who want to serve as lead plaintiff for the class should contact Robbins LLP. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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SOURCE Robbins LLP