Odonate Therapeutics, Inc.
Lead Plaintiff Deadline: 11/16/2020
SUMMARY OF CASE:
A securities class action has been filed against Odonate Therapeutics, Inc. (ODT) on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired Odonate securities between December 7, 2017 through August 21, 2020. This case has been filed in the USDC – S.D.CA.
The Complaint alleges that on or around December 6, 2017, Odonate conducted its initial public offering (“IPO”), selling 6,250,000 shares of its common stock priced at $24.00 per share.
Then, on August 24, 2020, Odonate issued a press release announcing top-line results from the Company’s CONTESSA trial, a Phase 3 study evaluating tesetaxel in combination with capecitabine in patients with metastatic breast cancer, which the Company had discussed in its supporting papers for the IPO. Although the study met its primary endpoint, tesetaxel plus capecitabine was associated with Grade 3 or higher neutropenia (low levels of white blood cells), which occurred in 71.2% of patients with the combination treatment versus 8.3% for capecitabine alone. Various other Grade 3 or higher treatment-emergent adverse events were also associated with tesetaxel plus capecitabine versus capecitabine alone. Further, discontinuation rates were 4.2% from neutropenia and 3.6% from neuropathy, and the overall discontinuation rate was 23.1% in the treatment group compared to 11.9% in the capecitabine alone group.
On this news, Odonate’s stock price fell $15.21 per share, or 45.35%, to close at $18.33 per share on August 24, 2020, representing a 23.63% decline from the IPO price.