SAN DIEGO, Sept. 02, 2022 (GLOBE NEWSWIRE) — The class: Law firm for shareholder rights Robbins LLP reminds investors that a shareholder has filed a class action lawsuit on behalf of all persons and entities holding Humanigen, Inc. HGEN securities between May 28, 2021 and July 12, 2022 for violating the Securities Exchange Act of 1934. Humanigen is a clinical-stage biopharmaceutical company focused on the prevention and treatment of an immune overreaction termed “cytokine storm” that results can result in organ failure and death. The company’s lead product candidate is the proprietary antibody lenzilumab, which is being developed, among other things, to treat cytokine storm associated with COVID-19.

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What is it about in this case: Humanigen, Inc. (HGEN) has overstated the clinical and commercial prospects of its lead drug candidate

In May 2021, Humanigen submitted an Emergency Use Authorization (“EUA”) application to the U.S. Food and Drug Administration for lenzilumab to treat patients hospitalized with COVID-19.

On September 9, 2021, Humanigen announced that the FDA had rejected lenzilumab’s EUA, noting that “[i]in his letter [the] The FDA stated that it could not conclude that the known and potential benefits of lenzilumab outweigh the known and potential risks of its use to treat COVID-19.” Humanigen stock price fell $7.14 on the news per share or by more than 47%. to close at $7.97 per share on September 9, 2021.

Then, on July 13, 2022, Humanigen announced that lenzilumab had not demonstrated statistical significance in the primary endpoint of the ACTIV-5/BET-B study. As a result of this news, Humanigen stock fell nearly 80% to close at $0.61 per share on July 13, 2022.

During class time, the defendants failed to disclose that lenzilumab was less effective in treating hospitalized COVID-19 patients than the defendants had argued. As a…