Ventyx Biosciences, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of California on behalf of those who acquired Ventyx Biosciences, Inc. (“Ventyx” or the “Company”) (NASDAQ:VTYX) securities during the period of October 21, 2021 through November 6, 2023, inclusive (“the Class Period”). Investors have until April 30, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
From the start of the Class Period on October 21, 2021, Ventyx issued numerous press releases containing positive news and results from its development of VTX958, a novel TYK2 inhibitor. On November 6, 2023, Ventyx issued a press release announcing results from its Phase 2 SERENITY Trial. The Company disclosed that “[a]lthough the trial achieved its primary endpoint, the magnitude of efficacy observed did not meet our internal target to support the advancement of VTX958 in plaque psoriasis.” Based on these results, the Company announced that it “will terminate ongoing activities in the Phase 2 plaque psoriasis trial effective immediately” and “terminate the ongoing Phase 2 trial of VTX958 in psoriatic arthritis.” On this news, the price of Ventyx shares declined by $11.36 per share, or approximately 80.6%, from $14.09 per share on November 6, 2023 to close at $2.73 on November 7, 2023.
The lawsuit alleges that Ventyx failed to disclose that: (i) VTX958 was less effective in treating psoriasis than the Company had led investors to believe; (ii) as a result, VTX958’s clinical and/or commercial prospects were overstated; (iii) accordingly, the Company had misrepresented its ability to develop and commercialize effective product candidates; (iv) Ventyx’s post-IPO business prospects were thus inflated; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
From the start of the Class Period on October 21, 2021, Ventyx issued numerous press releases containing positive news and results from its development of VTX958, a novel TYK2 inhibitor. On November 6, 2023, Ventyx issued a press release announcing results from its Phase 2 SERENITY Trial. The Company disclosed that “[a]lthough the trial achieved its primary endpoint, the magnitude of efficacy observed did not meet our internal target to support the advancement of VTX958 in plaque psoriasis.” Based on these results, the Company announced that it “will terminate ongoing activities in the Phase 2 plaque psoriasis trial effective immediately” and “terminate the ongoing Phase 2 trial of VTX958 in psoriatic arthritis.” On this news, the price of Ventyx shares declined by $11.36 per share, or approximately 80.6%, from $14.09 per share on November 6, 2023 to close at $2.73 on November 7, 2023.
The lawsuit alleges that Ventyx failed to disclose that: (i) VTX958 was less effective in treating psoriasis than the Company had led investors to believe; (ii) as a result, VTX958’s clinical and/or commercial prospects were overstated; (iii) accordingly, the Company had misrepresented its ability to develop and commercialize effective product candidates; (iv) Ventyx’s post-IPO business prospects were thus inflated; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.