Axsome Therapeutics, Inc.
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
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CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
The complaint alleges that throughout the Class Period, the defendants engaged in the making of materially false and misleading statements concerning the Company’s business, operations, and prospects. Specifically, the Defendants are accused of making false or misleading statements and failing to disclose the following:
- The Company’s development of AXS-07 encountered significant CMC (Chemistry, Manufacturing, and Controls) problems. These problems included the Company’s Chief Medical Officer (CMO) being unable to produce an adequate supply of AXS-07, even for limited clinical trials. These issues were required to be disclosed when discussing CMC concerns or making positive statements about clinical trial results and assurances regarding the filing of the AXS-07 New Drug Application (NDA).
- Consequently, it was unlikely that the Company would meet its initially stated timeline for submitting the AXS-07 NDA.
- The unresolved CMC problems persisted even after the Company had submitted its NDA for AXS-07.
- As a result of these issues, the defendants either knew or exhibited severe recklessness in not knowing that the FDA would likely delay or potentially reject the approval of the AXS-07 NDA due to the unresolved and significant CMC problems.
Following the news release on April 25, 2022, Axsome’s stock price experienced a sharp decline of $8.60 per share, representing a 21.99% decrease. It closed at $30.50 per share, and the trading volume was more than 2.7 times the 20-day moving average.
