Y-mAbs Therapeutics, Inc., a pharmaceutical company, has reached a settlement in a securities class action lawsuit, agreeing to pay $19.65 million, as disclosed in a recent SEC filing. The lawsuit, initially filed on January 18, 2023, involved allegations against the company and certain current and former officers, claiming violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
The suit represented a class of individuals who acquired Y-mAbs' common stock between October 6, 2020, and October 28, 2022. On Monday, the involved parties, including lead plaintiff Omar Miramontes, the company, and two of its officers, entered into a Stipulation and Agreement of Settlement, which is subject to approval by the United States District Court for the Southern District of New York (SDNY).
The settlement, which does not admit any fault or wrongdoing by Y-mAbs or the individual defendants, is expected to be covered majorly by the company's insurance carriers, with approximately 80% of the sum insured. Consequently, Y-mAbs anticipates that the payment will not significantly affect its cash runway.
On Tuesday, a motion for preliminary approval of the settlement was filed, including the forms of notice for class members. Final approval is pending, along with the satisfaction of other conditions set by the SDNY.
This development comes as Y-mAbs Therapeutics continues to navigate the legal landscape, with the company emphasizing that forward-looking statements regarding the settlement's impact and approval process involve risks and uncertainties. These statements are not guarantees of future performance and may differ materially from actual results.
In other recent news, Y-mAbs Therapeutics reported an 11% increase in U.S. net sales of their product DANYELZA, totaling $18.6 million. Despite this, the company's global net product sales saw a 4% decline, falling to $19.4 million due to reduced international demand. However, Y-mAbs maintains its full-year DANYELZA net product sales guidance of $95 million to $100 million.
In other developments, Truist Securities initiated coverage on Y-mAbs shares with a Buy rating, highlighting the company's revenue generation from its approved antibody-based drug and potential success of its radioimmunotherapy platform.
Furthermore, Y-mAbs has appointed Dr. Norman LaFrance as Chief Development Officer, a move expected to advance its work in cancer treatment technologies. The company also presented preclinical data on their novel cancer treatment technology, GD2-SADA, at the Society of Nuclear Medicine & Molecular Imaging (SNMMI) Annual Meeting.
These are among the recent developments for Y-mAbs Therapeutics, a company that continues to expand its presence both domestically and internationally. Despite some challenges, the company's outlook remains positive, especially with the anticipated steady growth of DANYELZA sales.
InvestingPro Insights
As Y-mAbs Therapeutics, Inc. (NASDAQ:YMAB) looks to put its recent legal challenges behind it, investors may find value in examining the company's financial health and market performance. InvestingPro data highlights a market capitalization of approximately $526.15 million, with a strong gross profit margin of 86.41% over the last twelve months as of Q1 2024. This suggests that Y-mAbs has been effective in managing its production costs relative to sales.
Interestingly, despite the company's impressive gross margins, analysts do not expect Y-mAbs to be profitable this year. The company's P/E ratio stands at -24.19, reflecting these concerns. However, the company has shown a remarkable return over the last year, with a year-to-date price total return of 80.79% as of mid-2024, signaling robust investor confidence that may be tied to its product pipeline or strategic initiatives.
InvestingPro Tips for Y-mAbs include an observation that the company holds more cash than debt on its balance sheet, which can be a sign of financial stability, and that its liquid assets exceed short-term obligations, indicating a strong liquidity position. For investors seeking more in-depth analysis and additional InvestingPro Tips, there are 7 more tips available on InvestingPro's platform for Y-mAbs. To access these insights and enhance your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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