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Milberg Weiss Announces Investigation Relating to Class Action Lawsuits Filed on Behalf of Certain Investors of Neurocrine Biosciences, Inc. - NBIX

Posted on: Thursday, 19 July 2007, 15:11 CDT

Attorney Advertising. The law firm of Milberg Weiss LLP announces that it is investigating possible illegal conduct as alleged in proposed class action lawsuits filed by law firms on behalf of all common stock purchasers of Neurocrine Biosciences, Inc. (NASDAQ: NBIX) ("Neurocrine" or the "Company") from June 20, 2002 to June 23, 2006, inclusive (the "Class Period").

The lawsuits are pending in the United States District Court for the Southern District of California against Neurocrine and certain of its officers and directors and allege that the defendants violated the Securities Exchange Act of 1934. If you purchased or otherwise acquired the common stock of Neurocrine, you may, no later than August 20, 2007, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss LLP, or other attorneys, to serve as your counsel in this action.

The Complaints allege that the Company failed to disclose and misrepresented the following material adverse facts that were known to defendants or recklessly disregarded by them: (1) that the Company had mischaracterized and concealed material data about the modified release formula of Indiplon (a drug defendants claimed could be used for the treatment of insomnia); (2) specifically, that study results for the modified release formula of Indiplon showed an increased tolerance to the drug within one month, and thereafter certain doses of modified release formula of Indiplon failed to demonstrate any long-term efficacy; (3) that the Company had designed, administered, and reported results from materially deficient trial programs, ostensibly designed to study the modified release formula of Indiplon, which necessarily yielded insufficient clinical data to support an FDA application for approval of Indiplon; (4) as such, the Company could not support the Indiplon new drug application submitted to the FDA with meaningful data, effectively compelling the FDA to reject the application; and (5) as a result of the foregoing, the Company's financial statements and projections regarding the FDA approval and future commercialization prospects of Indiplon lacked a reasonable basis when made.

The Company developed and reported results regarding multiple different forms and dosage levels of the drug, including 5 mg, 10 mg, and 15 mg levels. Throughout the Class Period, the defendants reported misleading results from clinical studies of the product and the effect of the different dosage levels. On May 16, 2006, the Company surprised investors when it reported that it had received a "not approvable" letter from the Food & Drug Administration ("FDA") regarding its supposedly successful 15 mg Indiplon tablets. The FDA requested that the Company reanalyze certain safety and efficacy data, and questioned the sufficiency of the Company's clinical data since the majority of the Company's Indiplon tablet studies were conducted with doses higher than 15 mg. Investors allegedly recognized that since the Company was unable to provide evidence that its product was approvable, the Company was in jeopardy of losing continued financial backing from Pfizer, who was only interested in bringing an effective product to the market, not in a drug that was not approvable. On this news, shares of the Company's stock plummeted $33.87 per share, or 62 percent, to close on May 16, 2006 at $20.76 per share, on unusually heavy trading volume.

On June 15, 2006, the Company revealed that the FDA had also requested that the Company reanalyze data that it had submitted to the FDA to support the 5 mg and 10 mg Indiplon capsules as well. Additionally, the FDA requested that the Company reexamine the safety analysis of certain segments of its study samples, including the safety of the drug for the elderly population that it had tested. On this news, shares of the Company's stock fell an additional $4.19 per share, or over 21.6 percent, to close on June 16, 2006 at $15.18 per share, on unusually heavy trading volume.

Finally, on June 22, 2006, the Company stated that Pfizer had terminated the collaboration agreement to develop and co-promote Indiplon. On this news, shares of the Company's stock fell an additional $3.96 per share, or 28.7 percent, to close on June 23, 2006 at $9.85 per share, on unusually heavy trading volume. In total, as the truth concerning the Company and Indiplon was revealed to the market, shares of the Company's stock declined from a closing price of $71.62 per share on March 15, 2006, to close at $9.85 per share on June 23, 2006. This decline represented a cumulative loss in the value of the Company's shares of $61.77, or over 86 percent.

Milberg Weiss LLP has been representing individual and institutional investors for nearly 40 years and serves as lead counsel in federal and state courts throughout the United States. Please visit the Milberg Weiss website (http://www.milbergweiss.com) for more information about the firm. If you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact the following attorneys:

 Lori G. Feldman, Esq. Anita B. Kartalopoulos, Esq. MILBERG WEISS LLP One Pennsylvania Plaza, 49th Fl. New York, NY 10119-0165 Phone number: (800) 320-5081 Email: contactus@milbergweiss.com  Website: http://www.milbergweiss.com  Attorney Advertising.  Prior Results Do Not Guarantee A Similar Outcome.  

SOURCE: Milberg Weiss LLP

Source: MARKET WIRE

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