Gana LLP Investigates Pharmaceutical Companies Underwritten by Brokerage Firms

shutterstock_93231562-300x201The securities lawyers of Gana LLP are investigating pharmaceutical company stocks underwritten and recommended by brokers at National Securities Corporation and vFinance.  IPOs and offerings of small pharmaceutical companies are incredibly risky – on par with the risks of penny stocks.  Most small pharmaceutical companies have limited business operations other than research and development of a handful of drugs.  Often times the entire value of the company’s stock is a wager on FDA or other regulatory approval of a limited number of drugs – in some instances a single drug.  Every announcement concerning the fate of drug can be the death knell of the stock and company.

Take the example of Northwest Biotherapeutics, Inc.  The stock peaked in July 2015 at over $12 a share.  Then one month later in one day the stock dropped 16% after news came out that a phase 3 clinical trial was halted for the company’s lead compound.  By July 2016 the company would trade at under $.50 a share, nearly a complete loss.

National Securities Corporation or vFinance are believed to be underwriting and offering investments in the following pharmaceutical companies:

*          Ventrus Biosciences

*          Avenue therapeutics

*          TG therapeutics, Inc.

*          Mustang Bio

*          Checkpoint Therapeutics Inc

*          Keryx Biopharmaceuticals Inc

*          Coronado Biosciences

*          Helocyte

*          Cellvation

*          Escala Therapeutics

*          Journey Medical Corporation

*          Cyprium Therapeutics

*          Caelum Biosciences

*          Fortress Biotech

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client.  In order to make a suitable recommendation the broker must meet certain requirements.  First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors.  Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

At Gana LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts.  Claims may be brought in securities arbitration before FINRA.  Our consultations are free of charge and the firm is only compensated if you recover.