MacroGenics, Inc. (MGNX) Accused of Misleading Shareholders
According to the class action complaint for alleged violations of the Securities Exchange Act of 1934, in February 2019, MacroGenics announced positive results for its pivotal Phase III SOPHIA study of Margetuximab, stating that the trial met its primary endpoint of prolongation of progression-free survival (PFS) in “patients treated with the combination of margetuximab plus chemotherapy compared to trastuzamb. Following the announcement of these results, MacroGenics’ share prices skyrocketed. Then, on May 13, 2019, the American Society of Clinical Oncologists (“ASCO”) posted the study’s abstract, disclosing that the October 2018 PFS analysis of the SOPHIA trial resulted in only 0.9 month improvements in PFS. However, MacroGenics continued to tout the results of its SOPHIA study, and on May 15, 2019, issued another press release stating it met “the first sequential primary endpoint of PFS in head-to-head with current standard of care” and that the “median overall survival (OS) at the time was prolonged by 1.7 months.” Then, on June 4, 2019, MacroGenics revealed during the ASCO meeting that its latest PFS and OS results had actually been conducted in October 2018, and the OS interim analysis showed no statistical difference between the drug treatments. On this news, the price of MacroGenics common stock fell over 23% over the next three trading days, to close at $14.51, and has yet to recover.
