CellCyte Genetics said it will "defend itself vigorously" against three shareholder lawsuits filed this week, and announced it has hired Philadelphia-based law firm Duane Morris.
The suits allege executives and outside shareholders of the small biotechnology company artificially inflated its stock price and defrauded investors by making misleading claims.
"We look forward to meeting these legal claims in court," said CEO Gary Reys.
Stock drops after product approval
ZymoGenetics stock fell 16.6 percent Friday, the most in 5-<133>1/2 years, a day after the company won approval of its first product, a drug to control bleeding in surgery patients.
The approval didn't keep Kevin Degeeter at Oppenheimer & Co. from downgrading the stock. Degeeter is "concerned about product pricing and market acceptance" of Recothrom, he said in a note to clients. ZymoGenetics says the product will cost 20 percent more than a standard drug derived from cow's blood.
"We believe ZymoGenetics could trade down to $5-$6 on a soft launch for Recothrom," Degeeter said in the note. ZymoGenetics closed down $2.16 at $10.89 Friday.
Company to sell shares; stock falls
Seattle Genetics stock declined 6.5 percent Friday after the company announced plans to sell 10 million common shares at $9 each.
The Bothell developer of targeted drugs for cancer expects to raise $84.8 million and use the proceeds to fund research and development, including clinical trials.
Seattle Genetics stock fell 63 cents to $9.07 Friday; the stock has declined 20 percent this year.