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Molecular Partners AG

The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Molecular Partners AG (“Molecular Partners”) (NASDAQ: MOLN) American Depositary Shares (“ADSs”) pursuant and/or traceable to the Offering Documents (defined below) issued in connection with the Company’s initial public offering conducted on or about June 16, 2021 (the “IPO”); and/or (b) Molecular Partners securities between June 16, 2021 and April 26, 2022, both dates inclusive (the “Class Period”). Investors have until September 12, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit. 
Molecular Partners operates as a clinical-stage biopharmaceutical company that focuses on the discovery, development, and commercialization of therapeutic proteins. Among other product candidates, Molecular Partners is developing ensovibep as a treatment for COVID-19 in collaboration with Novartis AG (“Novartis”). One of the Company’s most important development strategies for ensovibep includes securing Emergency Use Authorization (“EUA”) for ensovibep from the U.S. Food and Drug Administration (“FDA”). In addition, Molecular Partners is developing MP0310 (AMG 506) for the treatment of certain types of cancer in collaboration with Amgen Inc. (“Amgen”). The Company granted Amgen, among other licenses, the right to progress MP0310’s development program into later stage development, including into combination trials, following Phase 1 data. 
On April 22, 2021, Molecular Partners filed a registration statement on Form F-1 with the SEC in connection with the IPO, which, after several amendments, was declared effective by the SEC on June 15, 2021 (the “Registration Statement”).
On June 16, 2021, Molecular Partners filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (collectively, the “Offering Documents”). Pursuant to the Offering Documents, Molecular Partners conducted the IPO, issuing 3 million of its ADSs to the public at the IPO price $21.25 per ADS, for proceeds to the Company of over $59 million, after underwriting discounts and commissions, and before expenses.
On November 16, 2021, Molecular Partners disclosed that “a planned futility analysis of ensovibep in [an] ongoing [Phase 3] clinical study . . . has not met the thresholds required to continue enrollment of adults with COVID-19 in the hospitalized setting.” On this news, Molecular Partners ADS price declined by $4.64 per ADS, or approximately 31.37%, from $14.79 per ADS to close at $10.15 per ADS on November 16, 2021.
On April 26, 2022, months after applying for EUA from the FDA for ensovibep, Novartis’ Chief Executive Officer (“CEO”), Vas Narasimhan (“Narasimhan”), disclosed that “given the latest feedback . . . in our discussions with the [FDA], we would expect the agency to require a Phase 3 study before granting an EUA approval or a general approval” for ensovibep, and that “we need to make a kind of sober evaluation as to is it a doable study in light of the waning rates of COVID around the world[.]”  On this news, Molecular Partners ADS price declined by $2.68 per ADS, or approximately 16.17%, from $16.57 per share to close at $13.89 per ADS on April 26, 2022.
Also on April 26, 2022, during after-market hours, Molecular Partners “announced that Amgen . . . has informed the Company of their decision to return global rights of MP0310 to Molecular Partners following a strategic pipeline review.” On this news, Molecular Partners ADS price declined by $5.19 per ADS, or approximately 37.37%, from $13.89 per share to close at $8.70 per ADS on April 27, 2022.
On July 12, 2022, the day the suit was filed, Molecular Partners ADSs closed at $6.46 per ADS.
The lawsuit alleges throughout the Class Period, the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (i) ensovibep was less effective at treating COVID-19 than Defendants had led investors to believe; (ii) accordingly, the FDA was reasonably likely to require an additional Phase 3 study of ensovibep before granting the drug EUA; (iii) waning global rates of COVID-19 significantly reduced the Company’s chances of securing EUA for ensovibep; (iv) as a product candidate, MP0310 was less attractive to Amgen than Defendants had led investors to believe; (v) accordingly, there was a significant likelihood that Amgen would return global rights of MP0310 to Molecular Partners; (vi) as a result of all the foregoing, the clinical and commercial prospects of ensovibep and MP0310 were overstated; and (vii) as a result, the Offering Documents and Defendants’ public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.

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