Investigation of Immunovant, Inc.
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Immunovant, Inc. (IMVT) Misled Shareholders About the Viability of its Drug Candidate IMVT-1401
On September 29, 2019, Health Sciences Acquisitions Corporation (HSAC), then a special purpose acquisition company, entered into an agreement with Immunovant Sciences Ltd., a private biopharmaceutical company, to effect a merger between the two entities. As a result of the merger, HSAC acquired all shares of Immunovant Sciences and Immonvant Sciences became a wholly owned subsidiary of HSAC. HSAC then changed its name to Immunovant, Inc.
During the relevant period, defendants made false and/or misleading statements and/or failed to disclose that: (i) HSAC had performed inadequate due diligence into Immunovant Sciences prior to the merger; (ii) HSAC ignored safety issues associated with Immunovant Science’s drug candidate IMVT-1401; and (iii) IMVT-1401 was less safe than the Company had led investors to believe, which foreseeably diminished its prospects for regulatory approval, commercial viability and profitability.
On February 2, 201, Immunovant issued a press release announcing “a voluntary pause of dosing in its original clinical trials for IMVT-1401,” and disclosed that it “has become aware of a physiological signal consisting of elevated total cholesterol and LDL [low density lipoproteins] levels in IMVT-1401-treated patients.” On this news, Immunovant’s stock price fell $18.22 per share, or 42.08%, to close at $25.08 per share on February 2, 2021.