Adamas Pharmaceuticals, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Adamas Pharmaceuticals, Inc. (“Adamas” or the “Company”) (NASDAQ: ADMS) securities during the period from August 8, 2017 through September 30, 2019 (the “Class Period”). Investors have until February 10, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Adamas failed to disclose that: (i) health insurers were excluding GOCOVRI from their prescription formularies or requiring patients to use “step therapy” - i.e., making patients try immediate-release amantadine prior to covering GOCOVRI; and (ii) the rapid increase in physicians prescribing GOCOVRI during the Class Period was not due to its efficacy.
On March 4, 2019, Adamas walked back its previous prescription growth estimates for GOCOVRI, warned of a continued slow-down in GOCOVRI prescriptions, and refused to make further predictions about GOCOVRI’s ability to achieve a sizeable market share. On this news, Adamas’s stock fell $3.99 per share, or 32.8%, to close at $8.16 on March 5, 2019.
On September 30, 2019, Bank of America/Merrill Lynch analyst Tazeen Ahmad lowered its rating for Adamas shares to “Underperform” noting “existing overhangs for ADMS: (1) Gocovri coverage: a number of national formularies exclude Gocovri. We expect reimbursement hurdles in MSWI space especially with generic Ampyra launch.” On this news, Adamas’s stock fell $3.02 per share, or 42.8%, to close at $4.03 on October 3, 2019.
If you acquired Adamas securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.