INVIVYD, INC. F/K/A ADAGIO THERAPEUTICS, INC. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired Invivyd, Inc. f/k/a Adagio Therapeutics, Inc. (“Adagio” or the “Company”) (NASDAQ: IVVD) common stock between November 29, 2021 and December 14, 2021, inclusive. The lawsuit seeks to recover Adagio shareholders’ investment losses.
If you purchased common stock in Adagio between November 29, 2021 and December 14, 2021, inclusive, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
Adagio is a clinical-stage biopharmaceutical company that during the Class Period was focused on developing a monoclonal antibody (“mAb”) therapy for the prevention and treatment of COVID-19. The Company formed in June 2020, during some of the worst days of the pandemic, to develop drugs for the treatment and prevention of COVID-19 and future coronavirus outbreaks. In September 2022, Adagio announced that it was changing its corporate name to Invivyd, Inc.
Adagio’s lead product candidate during the Class Period is known as ADG20. According to Adagio, “ADG20 is designed to be a potent, long-acting and broadly neutralizing antibody for both the treatment and prevention of COVID-19 as either a single or combination agent.” Adagio stated in its Prospectus that “[i]n in vitro studies, ADG20 has demonstrated neutralizing activity against SARS-CoV-2 and the emerging variants that have been associated with lower efficacy rates of certain vaccines and are resistant or partially resistant to a subset of currently available or clinical-stage mAbs.”
Further, Adagio represented that “[u]nlike other antibody-based therapies specifically targeting SARS-CoV-2, ADG20 has demonstrated an ability in non-clinical studies an ability to neutralize SARS-CoV-2, including variants of concern (’VOC’), as well as a broad range of SARS-like viruses with neutralization potency at IC50 (half maximal inhibitory concentrations) of approximately 0.01 mcg/mL or less in live-virus cellular assays.” In other words, Adagio claimed that a very small amount of ADG20 (0.01 micrograms per milliliter) can inhibit virus growth in vitro by 50%.
On November 29, 2021, just three days after the WHO designated Omicron a VOC, Adagio issued a press release which announced that ADG20 would be effective against the Omicron variant (the “November 29 Press Release”). The November 29 Press Release stated that “as shown in in vitro studies, ADG20 retains activity against prior variants of concern including Alpha, Beta, Delta, and Gamma.” In addition, defendants represented that ADG20 was effective against Omicron, stating that “[f]or the Omicron variant, none of the mutations present in the spike protein are associated with escape from ADG20 neutralization.” The November 29 Press Release further stated that “[b]ased on published epitope mapping and structural studies, Adagio anticipates that ADG20 will retain neutralizing activity against the Omicron variant whereas other mAb products may lose substantial activity against this variant.”
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Specifically, Plaintiff alleges that Defendants failed to disclose that: (i) the published epitope mapping, structural studies, and sequence analyses which defendants had used to claim ADG20 was effective against the Omicron variant were insufficient, unreliable, and inadequate to make claims of effectiveness of ADG20 against Omicron; (ii) that defendants’ claims regarding ADG20’s efficacy against Omicron lacked a reasonable factual basis; and (iii) ADG20 was over 300 times less effective against the Omicron variant as compared to its effectiveness against previous variants.
On December 14, 2021, Adagio issued a press release reporting in vitro results of ADG20 against the Omicron variant (the “December 14 Press Release”). In the December 14 Press Release, only a few weeks after assuring investors of the efficacy against Omicron, Adagio announced that “[t]he in vitro data generated through both authentic and pseudovirus testing of the Omicron variant show a greater than 300-fold reduction in neutralizing activity of ADG20 against Omicron.” In other words, Adagio revealed that the data showed that ADG20 was 300 times less effective at neutralizing Omicron than it was against the other variants. Put simply, the Company admitted that the results showed that ADG20 did not work against Omicron. Defendant Gerngross explained: “‘While the individual mutations present in . . . Omicron . . . were not associated with escape from ADG20 in the context of an original strain of the virus, new data show that the combination of mutations present in the Omicron spike protein led to a reduction in ADG20 neutralization that was not suggested by prior data.’”
On this news, Adagio’s stock price fell almost 80%.
If you wish to serve as lead plaintiff, you must move the Court no later than April 3, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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