MURRAY, FRANK & SAILER LLP ANNOUNCES CLASS ACTION LAWSUIT AGAINST INTRABIOTICS PHARMACEUTICALS, INC. ON BEHALF OF SHAREHOLDERS - IBPI
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New York, NY (Primezone) July 9, 2004 - Murray, Frank & Sailer LLP announces that a class action lawsuit was filed in the Northern District of California on behalf of purchasers of the common stock of IntraBiotics Pharmaceuticals, Inc. ("Intrabiotics" or the Company) between September 5, 2003 and June 22, 2004, inclusive (the "Class Period").
The complaint charges Intrabiotics and certain of its officers with violations of the Securities Exchange Act of 1934. IntraBiotics is a biopharmaceutical company focused on the development of an oral solution of iseganan hydrochloride (iseganan HCl), an antimicrobial drug, for the prevention of ventilator associated pneumonia ("VAP")
The complaint alleges that during the Class Period defendants failed to disclose and indicate: (1) that iseganan was not safe and well tolerated at therapeutically relevant doses when administered to the oral cavity; (2) that the drug caused a higher rate of VAP and mortality as comparted to placebo; (3) that despite knowing and/or recklessly disregarding the aforementioned facts, the defendants nevertheless raised capital through offerings of its common stock (including a June 3, 2004 public offering of 3,450,000 shares for proceeds of $42.2 million) in order to portray to the market that iseganan was a viable marketable product that was on the "fast track" to FDA approval; and (4) that as a result of the above, the defendants statements concerning iseganan were lacking in any reasonable basis.
On June 23, 2004, the Company announced that an independent data monitoring committee recommended to the Company that it discontinue its pivotal trial of iseganan for the prevention of VAP based on an interim analysis of the data. A higher rate of both VAP and mortality was observed by the data monitoring committee in the active treatment group compared to the placebo group. As a result, IntraBiotics had stopped the study.
News of this shocked the market. Shares of IntraBiotics fell $9.45 per share or 69 percent, to close at $4.23 per share on unusual high trading volume.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or acquired the common stock of Intrabioitics between September 5, 2003 and June 22, 2004 and sustained damages, you may, no later than August 31, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
CONTACT: MURRAY, FRANK & SAILER LLP
Eric J. Belfi
Aaron D. Patton
Fax: (212) 682-1892