PHILADELPHIA, March 9, 2007 (PRIME NEWSWIRE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that the law firm filed a class action lawsuit, numbered 07-1953 in the United States District Court for the Southern District of New York, on behalf of purchasers of NUVELO, NC. ("NUVELO" or the "Company") (Nasdaq:NUVO) securities during the class period between January 5, 2006 and December 8, 2006, (the "Class Period") including purchasers in Nuvelo's January 30, 2006 $119 million follow-on offering ("Follow-On Offering") who have been damaged thereby.
The action is pending against defendants Nuvelo, Inc. (a biopharmaceutical company engaged in the development and commercialization of acute cardiovascular and cancer therapies), Ted W. Love -- Chief Executive Officer, Gary S. Titus -- Vice President of Finance and Chief Accounting Officer and Shelly D. Guyer -- Vice President of Business Development and Investor Relations. A copy of the Complaint is available from the Court or can be viewed on the Law Offices Bernard M. Gross, P.C. website at www.bernardmgross.com.
The Complaint charges defendants with violations of the Securities Exchange Act of 1934. The complaint alleges that during the class period defendants misrepresented its chances of obtaining Food and Drug Administration ("FDA") approval of alfimeprase, a purported new blood clot dissolver. Despite the fact that 80% of Nuvelo's value was attributed to this drug, the Company's top officers concealed that their own clinical data demonstrated alfimeprase was ineffective in dissolving blood clots.
On December 14, 2005, the Company announced it had received a Special Protocol Assessment ("SPA") agreement from the FDA, claiming that the SPA would solidify the regulatory pathway to approval for alfimeprase. Defendants also stated their "power calculations" demonstrated alfimeprase's efficacy as a drug candidate. During a January 5, 2006 conference call, defendants confirmed they believed alfimeprase would reach the U.S. consumer market by 2008 and that alfimeprase would generate $500 million in annual sales in the U.S. alone. The complaint alleges Nuvelo's stock price surged on this news and remained inflated throughout the Class Period while Nuvelo issued and sold 7.5 million shares of its common stock in an offering on January 30, 2006, receiving over $119 million in proceeds.
Then on December 11, 2006, Nuvelo disclosed that alfimeprase had completely failed its clinical trials. During the conference call following the announcement, Nuvelo's CEO admitted that alfimeprase failed to perform better than placebos and that previously reported positive results were due to drug injections washing clots away rather than dissolving them. On this news the Company's stock fell 80%, erasing over $800 million in market capitalization.
According to the complaint, the true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were that: (1) Nuvelo had no reliable clinical data suggesting that alfimeprase "dissolved" blood clots when applied to them through a catheter, other than physically washing them away; (2) Nuvelo had no "power calculations" suggesting alfimeprase would out-perform a placebo as required to demonstrate the efficacy the FDA would demand; and (3) defendants knew the decision of Amgen, the drug's original developer, to walk away in December 2004 based on Amgen's educated suspicion (based on clinical data also known to defendants) that alfimeprase would likely not pass FSA must and thus was not a commercially viable drug candidate.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you purchased the securities of NUVELO, NC. ("NUVELO" or the "Company") (Nasdaq:NUVO) securities during the class period between January 5, 2006 and December 8, 2006, (the "Class Period") including purchasers in Nuvelo's January 30, 2006 $119 million follow-on offering ("Follow-On Offering"), you may no later than April 10, 2007 move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters,
PLEASE CONTACT: Law Offices Bernard M. Gross, P.C.
Susan R. Gross, Esq.
Deborah R. Gross, Esq.
The Wanamaker Bldg
100 Penn Sq. East, Suite 450
Philadelphia, PA 19103
Telephone: 866-561-3600 (toll free)
or 215-561-3600
E-mail: susang@bernardmgross.com or
debbie@bernardmgross.com.
Website: http://www.bernardmgross.com
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca