Case Summary

Amylyx Pharmaceuticals

NASDAQ: AMLX

Case Details

  • Shih v. Amylyx Pharmaceuticals, Inc. et al.
  • Class Period:November 11, 2022 - November 8, 2023
  • Date Filed:February 09, 2024
  • Jurisdiction:U.S. District Court, Southern District of New York
  • Docket Number: 1:24-cv-00988
  • Lead Plaintiff Deadline: April 9, 2024
Days Left to
Seek Plaintiff
47

Overview

A class action lawsuit has been filed against Amylyx Pharmaceuticals, Inc. (“Amylyx” or the “Company”) (NASDAQ: AMLX) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Amylyx lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Amylyx securities between November 11, 2022 and November 8, 2023, both dates inclusive (the “Class Period”), and investors have until April 9, 2024 to seek appointment as lead plaintiff of the Amylyx class action lawsuit.

Amylyx is a commercial-stage biotechnology company that engages in the discovery and development of treatments for amyotrophic lateral sclerosis (“ALS”), also known as Lou Gehrig’s disease, and other neurodegenerative diseases.  The Company’s products include, among others, AMX0035 (commercially referred to as “RELYVRIO” in the United States), a dual UPR Bax apoptosis inhibitor composed of sodium phenylbutyrate and taurursodiol, for the treatment of ALS in adults in the United States.

The lawsuit alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Defendants had overstated RELYVRIO’s commercial prospects; (2) patients were discontinuing treatment with RELYVRIO after six months; (3) the rate at which new patients were starting treatment with RELYVRIO was decreasing; (4) accordingly, Defendants had also overstated RELYVRIO’s prescription rate; (5) Defendants attempted to hide the foregoing negative trends from investors and the market by blocking analysts from viewing RELYVRIO’s prescription data; and (6) as a result, Defendants’ public statements were materially false and misleading at all relevant times.

On November 9, 2023, Amylyx issued a press release announcing its third quarter (“Q3”) 2023 financial results, including a Q3 GAAP earnings per share of $0.30, missing consensus estimates by $0.12.  That same day, on a conference call with investors and analysts to discuss these results, Company management revealed that, despite a “purported steady cadence of new prescriptions written in” Q3 for RELYVRIO, Amylyx’s “results were impacted by a number of factors” including a “slowdown in net adds” for RELYVRIO in Q3, which was “primarily driven by increased discontinuations for a variety of reasons,” with only “60% of people taking RELYVRIO remaining on therapy six months after initiation in the U.S.”

Also on November 9, 2023, Investor’s Business Daily published an article addressing the Company’s disappointing financial results (the “IBD Article”).  The IBD Article cited an Evercore ISI analyst, who questioned Amylyx’s assertion that the number of new patients starting treatment with RELYVRIO was “steady,” noting that his math suggested otherwise and that Amylyx had blocked analysts from viewing RELYVRIO’s prescription data in the summer of 2023.  The analyst also stated that, “knowing that Amylyx’s stock had underperformed in 2023 already, management could have communicated the discontinuations dynamic much earlier,” and that the “stock move today in a bad biotech tape and fund performance doesn’t help investor confidence among folks that have held onto the stock.”  Following these disclosures and the publication of the IBD Article, Amylyx’s stock price fell $5.74 per share, or 31.89%, to close at $12.26 per share on November 9, 2023.

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If you purchased or otherwise acquired Amylyx (NASDAQ: AMLX) securities between November 11, 2022 and November 8, 2023, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Amylyx lawsuit is April 9, 2024.

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