NEW YORK, Aug. 19, 2011 (GLOBE NEWSWIRE) -- Shareholders of BioMimetic Therapeutics, Inc. ("BMTI" or the "Company") (Nasdaq:BMTI) are reminded of the securities class action lawsuit filed against BMTI and certain of its officers. The class action (Civil Action No. 11-cv-00653), pending in the United States District Court, Middle District of Tennessee, is on behalf of a class consisting of all persons or entities who purchased BMTI securities from October 14, 2009 through May 11, 2011, inclusive (the "Class Period"). The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. sections 78j(b) and 78t(a), and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased BMTI securities during the Class Period, you have until September 6, 2011 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or call 888.476.6529, ext. 350 (or 888.4-POMLAW), toll free.
BMTI's product, Augment™ Bone Graft ("Augment"), is a fully synthetic, off-the-shelf bone growth factor product for the treatment of bone defects and injuries. The Company's primary focus is obtaining market approval for Augment, and preparing for the anticipated commercial launch of Augment in the United States, the European Union and Australia.
Throughout the Class Period, Defendants conditioned investors to believe that FDA approval of Augment would be forthcoming through a host of materially false and misleading statements regarding the status of Augment's ongoing clinical studies, and the safety and efficacy of the Company's product.
Specifically, Defendants made false and/or misleading statements and/or failed to disclose material facts regarding: (a) the Company's business, operations, management, future business prospects and the intrinsic value of BMTI's common stock; (b) the safety and efficacy of Augment and its prospects for FDA approval; and (c) the woeful inadequacies of Augment's clinical trials. As a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On May 10, 2011, the FDA published briefing documents on Augment that were critical of Augment's clinical trial, stating that the "FDA still has clinical concerns with the safety and overall risk/benefit of the device at this time, primarily due to the unanswered question of safety in regards to the potential for cancer formation versus an unproven benefit in the current standard for care."
On this news, BMTI's stock price plummeted approximately $4.73 or over 35% and closed at $8.66 on unusually heavy volume.
On May 13, 2011, BMTI disclosed that the FDA Panel voted by a narrow margin of 10-8 in favor of Augment's efficacy, making it highly unlikely that the device will receive FDA approval without requiring additional trials, substantially delaying the launch of the product.
As a result of the news regarding the narrow Panel vote, BMTI shares declined nearly 12% or $1.095 and closed at $8.105.
The Pomerantz Firm, with offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.