NEW YORK, Feb. 9, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at BioSante Pharmaceuticals, Inc. ("BioSante" or the "Company") (Nasdaq: BPAX).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) BioSante's LibiGel product was ineffective and failed to deliver desired results; (2) the Company's LibiGel clinical demonstrations were faring poorly; and (3) LibiGel lacked any supposed multi-billion dollar market potential, similar to drugs Viagra, Levitra, and Cialis.
On February 12, 2010, the Company issued positive statements to investors about LibiGel's commercial viability, effectiveness, and market potential that caused shares of BioSante to trade at artificially high prices. Specifically, officials at BioSante boasted that clinical data demonstrated that LibiGel had a "statistically significant" effect on female patients treated with the product, and that LibiGel was "the most clinically advanced pharmaceutical product in the U.S." Additionally, BioSante and its Chief Executive Officer routinely analogized LibiGel's market potential to the $2 billion dollar market for male erectile drugs, often comparing LibiGel to products like "Viagra, Levitra, and Cialis."
On December 14, 2011, BioSante issued a press release disclosing for the first time that LibiGel failed to yield positive results in large-scale efficacy tests designed by the Company. According to study results, women treated with LibiGel did not experience statistically significant increases in either total satisfying sexual encounters or sexual desire. On this news, shares of BioSante declined by over 75% of their value. After trading as high as $2.52 on December 13, 2011, shares of BioSante closed on December 19, 2011, at just $0.38 per share.
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If you purchased BioSante securities between February 12, 2010 and December 15, 2011 and would like to discuss your legal rights, visit www.faruqilaw.com/BPAX. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com or firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding BioSante's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
|SOURCE Faruqi & Faruqi, LLP|
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