ADAMAS SHAREHOLDER ALERT: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In Adamas Pharmaceuticals, Inc. (ADMS) To Contact The Firm
New York, New York--(Newsfile Corp. - January 28, 2020) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Adamas Pharmaceuticals, Inc. (NASDAQ: ADMS) ("Adamas" or the "Company") of the February 10, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in Adamas stock or options between August 8, 2017 and September 30, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/ADMS. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Adamas securities between August 8, 2017 and September 30, 2019 (the "Class Period"). The case, Zaidi v. Adamas Pharmaceuticals, Inc. et al., No. 19-cv-08051 was filed on December 10, 2019, and has been assigned to Judge Jeffrey S. White.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements to the market. According to the Complaint, Adamas suffered from insurers excluding GOCOVRI from their coverage or requiring patients to try other therapies first. The rapid increase in doctors prescribing GOCOVRI to patients was not based on the drug's effectiveness. Based on these facts, the Company's public statements were false and materially misleading throughout the class period.
On October 5, 2018, an analyst at Bank of America/Merrill Lynch downgraded Adamas, revealing that his survey of doctors showed a higher-than-expected dropout rate for GOCOVRI due to the high cost and difficulty in securing prior authorizations from payers. Not only were GOCOVRI dropouts occurring, but doctors may have been looking at other options and the drug's value proposition was not fully appreciated so the level of doctors' excitement was still in the middle range and it was taking longer than expected to become a "go-to-drug." Furthermore, there was looming competition from the pending IPO of Osmotica Pharmaceuticals, which planned to launch an extended release formulation of amantadine, branded as OSMOLEX, in direct competition with GOCOVRI.
The Bank of America/Merrill Lynch survey cast doubt on GOCOVRI's ability to achieve a sizable market share.
On this news, the Company's stock price fell from $19.35 per share on October 4, 2018 to $17.83 per share on October 5, 2018: a $1.52 or 7.86% drop.
Then, after the markets closed on November 1, 2018, Adamas released its Q3 2018 earnings results, disclosing that the rate of new prescribers was not as robust as expected. Specifically, Adamas informed investors that the Company expected just 2% market penetration by the end of 2019, up from the then-expected 1% penetration by the end of 2018. In addition, Defendants failed to confirm that the FDA's approval of OSMOLEX would not impact GOCOVRI's sales in the long run.
On this news, the Company's stock price fell from $16.97 per share on November 1, 2018 to $11.89 per share on November 2, 2018: a $5.08 or 29.94% drop.
Then, on March 4, 2019, in Adamas's Q4 2018 conference call with investors, Adamas walked back its previous growth estimates for GOCOVRI, warned of a continued slow-down in prescriptions, and refused to make further predictions about GOCOVRI's ability to achieve a sizeable market share.
On this news, the Company's stock price fell from $12.15 per share on March 4, 2019 to $8.16 per share on March 5, 2019: a $3.99 or 32.84% drop.
Finally, on September 30, 2019, Bank of America/Merrill Lynch analyst Tazeen Ahmad lowered its rating for Adamas shares to "Underperform".
On this news, the Company's share price fell from $7.05 per share on September 26, 2019 to $3.02 per share on October 3, 2019: a $3.02 or 42.84% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Adamas's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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