According to the Complaint, the IPO documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation. Additionally, the complaint alleges that, throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, the IPO documents and defendants made false and/or misleading statements and/or failed to disclose that:
- ensovibep was less effective at treating COVID-19 than defendants had led investors to believe;
- accordingly, the U.S. Food and Drug Administration (“FDA”) was reasonably likely to require an additional Phase 3 study of ensovibep before granting the drug Emergency Use Authorization (“EUA”);
- waning global rates of COVID-19 significantly reduced the Company’s chances of securing EUA for ensovibep;
- as a product candidate, MP0310 (AMG 506), in development for the treatment of certain types of cancer, was less attractive to Amgen Inc. (“Amgen”) than defendants had led investors to believe;
- accordingly, there was a significant likelihood that Amgen would return global rights of MP0310 to Molecular Partners;
- as a result of all the foregoing, the clinical and commercial prospects of ensovibep and MP0310 were overstated; and
- as a result, the IPO documents and defendants’ public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.