Tokai Pharmaceuticals Inc (NASDAQ:TKAI) is the subject of a class action lawsuit over claims it violated federal securities lawsuit between June 24, 2015, and July 2015. The lawsuit filed by Lundin Law PC on behalf of shareholders alleges that the company made misleading and false statements that influenced investor’s investment decision.
Misleading Statement
Lundin Law PC alleges that the company failed to disclose that there were structural problems with the trial design of its Phase 3 study for ARMOR3-SV. Failure to disclose the information according to the law firm made investors invest in the stock yet it was clear that Tokai was going to struggle to meet primary endpoint and commercialization of galeterone.
A report published in November raising serious questions about galeterone study is expected to form the basis of the class action lawsuit. The report at the time questioned why the company was carrying out Phase 3 trials with just six patients considering Phase 2 had enrolled 87 patients.
The FDA was forced to swing into action consequently warning the pharmaceutical company of the structural changes to its trial design. Last month, the biopharmaceutical company announced it was ending trials for galeterone a drug designed to treat prostate cancer. While ending the trials the company reiterated that it did not believe the study had the potential to meet the primary end.
Unending Woes
Structural changes to trial design are not the only problem that continues to bombard the stock’s sentiments on the street. There have been allegations of rampant insider trading; shares of the stock having dropped to lows of $9.38 in November followed by a further crash to current levels of $1.38 a share.
Recently, Tokai Pharmaceuticals Inc (NASDAQ:TKAI) reported a net loss of $13.5 million for the second quarter, up from a net loss of $13.2 million reported last year. Per share, net loss stood at $0.60 a share against consensus estimates of $0.53 a share. The company ended the quarter with $43.9 million in cash.
Progressive Care Inc (OTCMKTS:RXMD) Potential Bull Run in Focus
Progressive Care Inc (OTCMKTS:RXMD) pulled back in the market in the wake of posting impressive revenue for the month of July. The same is already eliciting mixed reactions on the street, as a potential bull run appears to be in play as the health care service provider continues to bolster its prospects in the industry.
Revenues of $1.5 million for the month of July came on the heels of yet another record-breaking month after the company posted a 53% increase in revenue in the month of June. The number of prescriptions that Progressive Care fills on a monthly basis continues to increase further helping affirm its sentiments among investors.
Progressive Care Inc (OTCMKTS:RXMD) tremendous revenue growth continues to spark interest seen by the stock moving higher to new highs in the recent past. Recent moves in the market could be an indication of a potential bull run especially on a recent pull back.
