Healthy Skepticism Library item: 11889

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Novartis sued in US for allegedly withholding research information about Tasigna
Thomson Financial 2007 Oct 30
http://www.forbes.com/markets/feeds/afx/2007/10/30/afx4276268.html

Full text:

US law firm Coughlin Stoia Geller Rudman & Robbins issued a class action lawsuit against Novartis AG for allegedly withholding adverse information regarding the company’s research into potential new cancer drug Tasigna.

The plaintiffs claimed the Swiss pharmaceutical giant failed to disclose adverse information regarding its research into Tasigna, which caused the shares to trade at artificially inflated prices in the period.

The suit was filed in the District Court of New Jersey on behalf of shareholders who purchased the stock during June 14, 2006 and July 17, 2007.

On July 17, 2007, Novartis issued a press release announcing that the FDA had requested a three-month extension in the regulatory review period for Tasigna.

Following the FDA disclosure of the safety data for Tasigna, which the defendants allegedly had known for several months, Novartis’ share price fell from 55.45 usd to 53.36 usd in two days, said Coughlin Stoia.

Novartis yesterday said it received FDA clearance for the drug as a anti-cancer therapy for some forms of leukaemia.