Dallas, Texas 03/04/2014 (FINANCIALSTRENDS) – Some of the US National Law firms have announced that a class action lawsuit has been initiated in United States District Court, New Jersey on behalf of Immunomedics investors who have purchased stock during May 9, 2013 and October 9, 2013. The charges against Immunomedics and certain of its officers and directors are associated to the breach of the Securities Exchange Act of 1934.
On October 9, 2013, Immunomedics made an announcement that its agreement with company Takeda-Nycomed stands terminated. As per the earlier agreement Takeda-Nycomed was accountable to complete the clinical development and obtain regulatory approval for Veltuzumab which is an antibody used for treatment of non-cancer indications and also manufacturing and marketing the same. Immunomedics, Inc.(NASDAQ:IMMU) had retained the commercial rights to market Veltuzumab once it was developed and manufactured.
With the agreement terminated, Immunomedics, Inc. (NASDAQ:IMMU) common stock dropped 5.9% to 12% during a heavy trading volume as termination news was unofficially leaked , thus inflicting huge loss to the investors. The investors have filed lawsuit to recover their respective loses from Immunomedics.
Immunomedics, Inc. (NASDAQ:IMMU) Second Quarter Fiscal 2014 Financial Results
Immunomedics, Inc. (NASDAQ:IMMU) is a biopharmaceutical company that is into developing antibody-based products for treatment of some serious diseases. The company’s total revenues for the second quarter of fiscal 2014 saw an increase $0.4 million compared to last quarter which was $0.8 million. This increase is primarily attributed to the LeukoScan sales in Europe, higher research and development revenues.
Due to substantial increase in clinical trail costs, the total cost during the Second Fiscal quarter increased by 17%. And the other major contributing factor to the costs was the legal expense towards arbitration proceedings with Takeda-Nycomed. As of end of December, 2013 the company has $26.8 million as cash and its equivalents with no long term debts.