CTI BioPharma Corp (NASDAQ:CTIC) is in trouble as Goldberg Law PC has announced probe against the company for misrepresentations in shareholder information. The law firm will investigate if the pharmaceutical firm and its staff are involved in providing false information to the shareholders.
Another investigation has also been initiated by Bronstein, Gewirtz & Grossman, LLC for shareholders who bought securities of the company.
Investigations Are On
The law firm is investigating whether the company and its directors are involved in any Federal Securities Law violation under the Securities Exchange Act of 1934.
FDA Puts Pause on Pacritinib
Meanwhile, the company declared on Monday that the U.S. Food and Drug Administration (FDA) ordered a partial pause on the clinical trials of its drug pacritinib.
As per the FDA directions, all pacritinib treatments involving new patient enrollment and crossover treatment need to be paused. Patients who did not benefit from the drug even after 30 weeks also need to stop using it.
FDA has further asked the company to modify information regarding the drug in all its brochures apart from some other regulatory recommendations. The increase in mortality rates and other side effects in patients using the pacritinib medication have been the reasons cited by FDA for the pause.
The company is implementing the recommendations issued by FDA and it has notified all the investigators who were involved in the trails across the world about the pause.
The FDA will review the information as per recommendations issued once the company submits the modified documents before deciding on lifting the pause on trials of the pacritinib drug. The clinical trial of pacritinib was under the last stages and the pause has acted as a major jolt to its progress.
The FDA partial pause has affected the company stock that saw a dip of 65% to a per share price of $0.40 in Monday pre-trade.
CTI BioPharma also announced that it has completed the enrollment of patients for the second phase of the PERSIST-2 clinical trials for treating myelofibrosis patients. The company is mainly into development and marketing of innovative drug treatments for blood cancers and other life-threatening conditions.