NEW YORK, May 10, May 10, 2013 LawFuel.com – Class Action Lawsuit News — Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Incyte Corporation (“Incyte” or the “Company”) INCY +4.11% and certain of its officers. The class action filed in United States District Court, District of Delaware, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Incyte between April 26, 2012 and August 1, 2012, both dates inclusive of (the “Class Period”).
This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Incyte securities during the Class Period, you have until May 6, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Incyte is a pharmaceutical company. The Company has obtained U.S. Food and Drug Administration (“FDA”) approval for distribution and sale of just one of its drug offerings in the United States, Jakafi (ruxolitinib), which the FDA first approved for sale in November 2011. Jakafi is indicated for the treatment of patients with intermediate or high-risk myelofibrosis.
The Complaint alleges that throughout the Class Period, Defendants issued a series of materially false and misleading statements regarding the Company’s revenues and operations, and prospects. Specifically, on April 26, 2012 Incyte issued a press release announcing its 1Q 2012 financial results (including a $40 million milestone payment) and boosting Incyte’s FY 2012 revenue forecast more than 60%, from $67 million to $107 million. The press release, entitled “Incyte Reports 2012 First-Quarter Financial Results; Updates Shareholders on Commercial Activity and Key Clinical Programs,” stated that the Company had achieved “$19.3 million in first-quarter net product revenue from Jakafi (ruxolitinib),” with “$25.1 million of Jakafi shipped to specialty pharmacies during the quarter.”
On August 2, 2012, Incyte revealed that Jakafi sales growth had been much softer during the second quarter of 2012 than investors had been led to expect. The Company also disclosed that many of the new patients prescribed Jakafi were so sick they would not have been eligible for the Phase III trial. The Company conceded that while prescriptions to these patients had increased sales revenues, these were not revenues that would continue for the suggested three years on average, as claimed, as certain patients died. On this news, the price of Incyte stock had fallen by over 22% or $5.35 per share to close at $19.57 on August 2, 2012.
The Pomerantz Firm, with offices in New York, Chicago, San Diego and Florida, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.