BIRMINGHAM, Ala., Aug. 15, 2011 (GLOBE NEWSWIRE) -- Burke, Harvey & Frankowski, LLC is investigating potential claims available to shareholders of BioMimetic Therapeutics, Inc. ("BMTI" or the "Company") related to charges of fraudulent acts and false financial reporting by the Company. Additional information is included below.
Summary of the Investigation:
Founded in 1999 and headquartered in Franklin, Tennessee, BMTI is a biotechnology company engaged in the development and commercialization of regenerative protein therapeutic products primarily used for bone and tissue regeneration, repair and healing of musculoskeletal injuries, and conditions affecting bones, tendons, ligaments, and cartilage. The Company was formerly known as BioMimetic Pharmaceuticals, Inc., changing its name to BioMimetic Therapeutics, Inc. in July 2005.
A securities class action was filed in the United States District Court for the Middle District of Tennessee on behalf of purchasers of the securities of BMTI from October 14, 2009 through May 11, 2011, inclusive.
The complaint filed in the action charges BMTI and certain of its officers and directors with violations of the federal securities laws. Specifically the Complaint alleges that BMTI made false statements and/or failed to disclose material facts regarding: (i) the Company's business, operations, management, future business prospects and the intrinsic value of BMTI's common stock; (ii) the safety and efficacy of the Company's bone growth factor product, Augment™ Bone Graft ("Augment"), for the treatment of bone defects and injuries and its prospects for FDA approval; and (iii) serious inadequacies of Augment's clinical trials.
On May 10, 2011, the FDA published briefing documents on Augment that were critical of Augment's clinical trial, stating the "FDA still has clinical concerns with the safety and overall risk/benefit of the device at this time, primarily due to the unanswered question of safety in regards to the potential for cancer formation versus an unproven benefit in the current standard for care." On this news, BMTI's stock fell approximately 35% to close at $8.66. As of August 11, 2011, BMTI shares traded at approximately $3.
During the class period, on July 20, 2010, BioMimetic announced the closing of a public offering of the Company's common stock. BioMimetic sold a total of approximately 5.64 million shares of its common stock at a price to the public of $8.50 per share in the offering.
If you purchased BMTI stock in the Company's July 2010 public offering, and would like additional information regarding this investigation or if you have information regarding the allegations against the company, please contact Richard Frankowski at: 1-888-880-9046.