December 15, 2015 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating Neothetics, Inc. (“Neothetics” or the “Company”) (NASDAQ: NEOT). Neothetics is a clinical-stage specialty pharmaceutical company developing therapeutics for the aesthetic market. The Company’s lead product candidate, LIPO-202, is for the reduction of subcutaneous fat in the central abdomen (belly fat) in non-obese patients. Investors who purchased shares of Neothetics common stock in the Company’s initial public offering (“IPO”) or since the IPO may be affected.
On November 19, 2014, Neothetics sold 4.65 million shares at $14 per share in its IPO, pursuant to a Prospectus and Registration Statement filed with the SEC (collectively, the “Registration Statement”).
The Registration Statement states that a Phase 2 trial known as RESET, LIPO-202 “produced statistically significant reduction of central abdominal bulging due to subcutaneous fat in non-obese patients compared to placebo over the eight-week treatment period.” Additionally, the Registration Statement states that at the Company’s End-of-Phase 2 meeting with the FDA, the FDA expressed concerns regarding the design of the Company’s Phase 3 clinical trials. Specifically, the Registration Statement states that “in [Neothetics’] End-of-Phase 2 meeting with the FDA, the FDA expressed concerns regarding whether [Neothetics] proposed secondary endpoint measurement tools are acceptable for regulatory approval and raised the issue of whether a more appropriate physical measure of reduction of central abdominal bulging or subcutaneous fat could be obtained using other measurement tools, such as 2-D ultrasound.”
On December 14, 2015 after the market closed, Neothetics issued a press release that its pivotal Phase 3 trials, AbCONTOUR1 and AbCONTOUR2, had failed to achieve their primary or secondary efficacy endpoints. In the December 14, 2015 press release, the Company states that the outcome of both Phase 3 trials was “unequivocally negative.”
On December 15, 2015, the first trading day following the December 14 disclosures, Neothetics’ common stock plunged in midday trading by about 81%, or $5.58 per share, to $1.35 per share on heavy trading volume.
If you purchased Neothetics’ common stock and would like to discuss our investigation, please contact us by e-mailing
or by calling 800-290-1952.
Attorneys: Laurence D. King, Pamela A. Mayer