Kaskela Law LLC announces that it is investigating Odonate Therapeutics, Inc. (“Odonate” or the “Company”) (Nasdaq: ODT).
Recently a securities fraud complaint was filed against Odonate in federal court. The complaint alleges that Odonate made a series of false and misleading statements to investors between December 7, 2017 and March 19, 2021 regarding the Company’s development of its sole drug candidate, tesetaxel.
On June 28, 2019, Odonate completed a Secondary Public Offering (“SPO”) of common stock, selling 4.75 million shares of common stock to investors at a price of $26.00 per share, for gross proceeds over $123 million.
On September 1, 2020, Odonate completed another SPO of common stock, selling 5.6 million shares of common stock to investors at a price of $14.25 per share, for gross proceeds of $92 million.
On March 22, 2021, Odonate issued a press release announcing it was discontinuing tesetaxel’s development following feedback from the U.S. Food and Drug Administration (“FDA”) that the clinical data package for tesetaxel was unlikely to support FDA approval. Following this news, Odonate’s stock price fell $15.07 per share, or 79%, to close at $3.96 per share on March 22, 2021.
Kaskela Law LLC is investigating whether Odonate and/or the Company’s executive officers issued false and misleading statements to investors in connection with the Company’s two SPOs of common stock.
Investors who purchased Odonate shares (i) on or around June 28, 2019 at $26.00 per share, or (ii) on or around September 1, 2020 at $14.25 per share, are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by completing the information form on this page, for additional investigation about this investigation and their legal rights and options.