Centessa Pharmaceuticals Facing Investigation by National Securities Law Firm Over Alleged Misleading Statements

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McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt, APC

Nov 10, 2022, 15:20 ET

Investors Claim Significant Losses Following Product Failures

ONTARIO, Nov. 10, 2022 /PRNewswire/ -- McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt APC (MLG) – a national law firm specializing in Securities Litigation , Commercial Litigation, and Class Actions – informs investors that a class action lawsuit has been filed in the United States District Court for the Central District of California (captioned Fernandes v. Centessa Pharmaceuticals plc, No. 22-cv-07030 (C.D. Cal.)) on behalf of investors who purchased and/or acquired (1) Centessa Pharmaceuticals (NASDAQ: CNTA) ("Centessa" or the "Company") American Depositary Shares ("ADSs") pursuant and/or traceable to the Offering Documents issued in connection with Centessa's initial public offering conducted on or about May 28, 2021 (the "IPO"); and/or (2) Centessa securities between May 28, 2021 and June 1, 2022, inclusive (the "Class Period"). Investors have until November 28, 2022, to seek appointment as lead plaintiff in the action.

Centessa Pharmaceuticals develops multiple medical products such as lixivaptan, a vasopressin V2 receptor small molecule inhibitor in Phase 3 clinical development for the treatment of autosomal dominant polycystic kidney disease. Centessa also is developing a small molecule pharmacological chaperon folding corrector of the Z variant of the DNA encoding protein alpha-1-antitrypsin, ZF874, which is in Phase 1 clinical development for the treatment of A1AT deficiency. On May 28, 2021, Centessa conducted the Initial Public Offering, issuing 16.5 million of its securities to the public at the price of $20 per ADS.

The claims under investigation are whether Centessa made false and/or misleading statements and/or concealed that : (1) the company's product, lixivaptan, was less safe than Centessa had represented; (2) Centessa overstated lixivaptan's clinical and commercial prospects; (3) another Centessa product, ZF874, was less safe than it had been represented; (4) Centessa overstated ZF874's clinical and commercial prospects while downplaying the drug's safety issues; and (5) as a result, documents issued in connection with Centessa's initial public offering and the company's public statements throughout the class period were materially false and/or misleading and failed to state information required.

On November 1, 2021, Centessa announced results from a Phase 1 study evaluating ZF874's in treating AATD. Centessa announced, among other things, potential safety issues related to increases in liver enzymes alanine aminotransferase ("ALT") and aspartate aminotransferase ("AST") in one of the study subjects. On this news, Centessa's ADS price fell by more than 18%.

Then, on June 2, 2022, Centessa announced "it has made the strategic decision to discontinue development of lixivaptan for [ADPKD]," citing "a recent observation of [ALT] and [AST] elevations in one subject" from a Phase 3 study of lixivaptan that was designed to assess liver and non-liver safety in certain subjects. On this news, Centessa's ADS price fell by nearly 28%.

Last, on August 10, 2022, Centessa announced "its decision to discontinue development of ZF874 following a recent report of an adverse event (AE) involving elevated liver enzymes (AST/ALT) in a . . . subject dosed with 5 mg/kg BID of ZF874 in the Phase 1 study." Centessa stated that "[b]ased on the results observed to date, [Centessa] concluded that ZF874 was unlikely to achieve the desired target product profile." On this news, Centessa's ADSs price fell by an additional 5.19%, further harming investors.

McCune Law Group hopes to leverage its Securities Litigation practice area to protect investors from dishonest or misleading business practices that take advantage of their investors. "Centessa talked up their products while understating or ignoring the problems they faced," says MLG Partner Elaine. S Kusel , "Without the proper understanding of the situation at Centessa, investors were blindsided by these poor performance results and safety concerns. They deserve better from the businesses they support."

About the Lead Plaintiff Process : The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or otherwise acquired Centessa ADSs pursuant and/or traceable to the Offering Documents issued in connection with the IPO and/or Centessa securities during the Class Period to seek appointment as lead plaintiff. The lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. The lead plaintiff acts on behalf of all other class members in directing the Centessa class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Centessa class action lawsuit. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Centessa class action lawsuit.

About MLG's Securities Litigation Practice: The Securities Litigation attorneys of MLG provide representation for investors who have been wronged through fraud, scams, and schemes. Our team has many years of experience bringing claims on behalf of investors and pursues all avenues of compensation to maximize our clients' recovery as they navigate this tumultuous time. With hard-hitting tactics and dedicated legal professionals protecting our clients' interests, MLG's Securities Litigation Practice Group hopes to hold companies accountable for their unfair or illegal financial practices.

About McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt APC: McCune Law Group has a deep history of success for its clients, including a $203 million verdict against Wells Fargo Bank, recovery of over $1 billion for its clients, and over 100 contingency cases with recovery of $1 million or more. MLG maintains California offices in Ontario, San Bernardino, Calimesa, Palm Desert, and Irvine and supports its national practice with offices in Illinois and New Jersey. For over 30 years, MLG has successfully represented Southern California residents and grown to be the largest Inland Empire consumer rights firm. Visit  mccunewright.com  for more information. 

CONTACT: [email protected]

SOURCE McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt, APC