Kiromic Biopharma, Inc. (KRBP) Officers and Directors Under Investigation for Possible False Statements About Its Commercial Prospects
Schubert Jonckheer & Kolbe LLP is investigating potential derivative claims on behalf of shareholders of Kiromic Biopharma, Inc. (NASDAQ: KRBP) relating to possible false and misleading statements to investors concerning commercial prospects for the company’s immunotherapy medications.
Kiromic is a target discovery and gene-editing company which utilizes artificial intelligence to create immunotherapy products. FDA approval was key to Kiromic’s commercial success. Kiromic filed two investigational new drug (“IND”) applications with the FDA in December 2020 and resubmitted the applications based on product revisions in May 2021. On June 16 and 17, 2021, the FDA informed Kiromic that the agency was placing a clinical hold on the company’s IND applications, which would delay clinical testing and slow down product development.
Kiromic’s public offering was finalized in early July 2021, pursuant to a registration statement issued on June 29, 2021, which falsely represented that the FDA approval process was well underway for the company’s immunotherapy drugs: “These products are in the pre-initial new drug (“IND”) stages of the US Food and Drug Administration (the “FDA”) clinical trial process. We are currently going through the IND enabling trials process and we expect that first in human dosing Phase I of clinical trials will commence in the third quarter of 2021.”
Kiromic made a passing reference to the FDA’s clinical hold in a press release issued on August 13, 2021. However, the company only revealed the full details of the clinical hold in an 8-K filed on February 2, 2022. In this same filing, Kiromic acknowledged its failure to be forthright about the clinical hold in the company’s offering documents.
The Schubert Firm is investigating potential breaches of fiduciary duty by Kiromic’s officers and directors in connection with these allegations. If you own stock in Kiromic Biopharma and wish to obtain additional information about your legal rights, please complete the form below for a free legal consultation.
