Case: XBiotech, Inc.
November 24, 2015 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating XBiotech, Inc. ("XBiotech” or the "Company") (Nasdaq: XBIT) for potential violations of the federal securities laws. Investors who purchased XBiotech securities since the Company’s April 14, 2015 initial public offering (“IPO”) may be affected.
On April 14, 2015, XBiotech sold 4 million shares at $19 per share in its IPO. The IPO prospectus states that obtaining regulatory approval for its products requires that the Company demonstrate with substantial evidence gathered in preclinical and well-controlled clinical studies . . . that the product candidate is safe and effective for use for that target indication and that the manufacturing facilities, processes and controls are adequate. . . .”
On November 23, 2015, after the market closed, XBiotech announced that data for 72 patients in a Phase III Oncology Study of its True Human™ therapeutic antibodies were compromised and are unavailable for primary endpoint evaluation due to irregularities. These irregularities include patients dropping out of the study prior to receiving any dosing with drug or placebo,, erroneously receiving either placebo or study drug, and failing to receive scheduled DEXA scans, properly complete EORTC evaluation, or both.
On November 24, 2015, the first trading day following the disclosures, shares of XBiotech’s stock dropped by $4.41 per share, more than 33%, and were trading at about $8.84 per share, less than half the IPO price, in midday trading.