PHILADELPHIA, July 13, 2012 /PRNewswire/ -- The law firm of Berger & Montague, P.C. was the first law firm to file a class action against Viropharma Incorporated and Vincent J. Milano in Eastern District of Pennsylvania on May 17, 2012, Docket Number 2:12-CV-02714 on behalf of all investors who purchased shares of Viropharma ("VPHM") between December 14, 2011 and April 9, 2012.
The complaint alleges that on December 14, 2011 Viropharma issued a press release announcing the modernization of labeling for Vancocin Capsules effective through the FDA's approval of a sNDA. The press release stated, "As a result of today's sNDA approval, Viropharma believes Vancocin meets the requirements for, and thus has, three years of exclusivity, and that generic Vancomycin capsules will not be approved during this time period."
As a result of the materially false and misleading representation about market exclusivity in the December 14, 2011 press release, the market price of Viropharma stock jumped $4.21 per share, from a closing price of $23.59 per share on December 13, 2011 to a closing price of $27.80 on December 14, 2011, on heavy volume of almost five million shares.
On April 10, 2012 before the market opening, the company filed a 8-K with the SEC attaching a press release which stated among other things that the FDA informed Viropharma that the recent supplemental new drug application (sNDA) for Vancocin approved on December 14, 2011 would not qualify for three additional years of exclusivity based on the agency's assertion that in order for an sNDA for an old antibiotic such as Vancocin to be eligible for a grant of exclusivity, it must be a significant new use or indication. The FDA also indicated that it was approving three ANDA's for generic Vancomycin capsules.
In addition, the company received notification that the Federal Trade Commission is conducting an investigation into whether the company has engaged in unfair methods of competition with respect to Vancocin.
As a result, at the close of trading on April 10, 2012, Viropharma shares had declined $6.17 per share or 22% to close at $22.44 per share on extraordinarily high trading volume.
For more information about this case, please contact
Sherrie R. Savett, Esq.
Douglas R. Risen, Esq.
BERGER & MONTAGUE, P.C.
1622 Locust Street
Philadelphia, PA 19103
SOURCE Berger & Montague, P.C.