SAN DIEGO, March 04, 2024 (GLOBE NEWSWIRE) — Robbins LLP informs investors that a shareholder filed a class action on behalf of all those who purchased or otherwise acquired Ventyx Biosciences, Inc. (NASDAQ: VTYX) (1) pursuant to the Offering Documents issued in connection with the Company’s October 2021 initial public offering (“IPO”) or (2) Ventyx securities between October 21, 2021 and November 6, 2023. Ventyx is a clinical-stage biopharmaceutical company that develops small molecule product candidates to address a range of inflammatory diseases. The Company’s lead clinical product candidate is VTX958, a selective allosteric tyrosine kinase type 2 inhibitor for psoriasis, psoriatic arthritis, and Crohn’s disease. In 2022, Ventyx initiated a Phase 2 clinical trial of VTX958 for the treatment of moderate to severe plaque psoriasis (the “Phase 2 SERENITY Trial”).
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The Allegations: Ventyx Biosciences, Inc. (VTYX) Allegedly Misled Investors Regarding the Viability and Efficacy of its Psoriasis Drug
According to the complaint, the Offering Documents filed in support of Ventyx’s October 21, 2021 IPO were negligently prepared. In addition, during the class period, defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, the Offering Documents and defendants failed to disclose that: (i) VTX958 was less effective in treating psoriasis than defendants had led investors to believe; (ii) as a result, VTX958’s clinical and/or commercial prospects were overstated; (iii) accordingly, the Company had misrepresented its ability to develop and commercialize effective product candidates; and (iv) Ventyx’s post-IPO business prospects were thus inflated.
On November 6, 2023, Ventyx issued a press release announcing results from the Phase 2 SERENITY Trial. Therein, the Company disclosed that, “[a]lthough the trial achieved its primary endpoint, the magnitude of efficacy observed did not meet our internal target to support advancement of VTX958 in plaque psoriasis.” Therefore, the Company “will terminate ongoing activities in the Phase 2 plaque psoriasis trial effective immediately” and “terminate the ongoing Phase 2 trial of VTX958 in psoriatic arthritis.” On this news, Ventyx’s common stock price fell $11.36 per share, or 80.62%, to close at $2.73 per share on November 7, 2023.
What Now: You may be eligible to participate in the class action against Ventyx Biosciences, Inc. Shareholders who want to serve as lead plaintiff for the class must file their papers with the court by April 30, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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