Securities Lawyers Blog
The securities lawyers of Gana Weinstein LLP are investigating pharmaceutical company stocks underwritten and recommended by brokers at National Securities Corporation and vFinance. IPOs and offerings of small pharmaceutical companies are incredibly risky – on par with the risks of penny stocks. Most small pharmaceutical companies have limited business operations other than research and development of a handful of drugs. Often times the entire value of the company’s stock is a wager on FDA or other regulatory approval of a limited number of drugs – in some instances a single drug. Every announcement concerning the fate of drug can be the death knell of the stock and company.
Take the example of Northwest Biotherapeutics, Inc. The stock peaked in July 2015 at over $12 a share. Then one month later in one day the stock dropped 16% after news came out that a phase 3 clinical trial was halted for the company’s lead compound. By July 2016 the company would trade at under $.50 a share, nearly a complete loss.
National Securities Corporation or vFinance are believed to be underwriting and offering investments in the following pharmaceutical companies: