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Provention Bio Board Faces New Investor Suit Over Diabetes Drug

Aug. 12, 2022, 3:25 PM

A Provention Bio Inc. investor sued members of its board in Delaware, claiming they inflated its stock price by hyping the market-readiness of a potential breakthrough diabetes treatment that was actually nowhere near being commercialized.

The 76-page lawsuit accuses the board of misleading the public about a key clinical trial backing the drug candidate, teplizumab. The Food and Drug Administration rejected the results of the study, which evaluated a related formulation that regulators deemed “not comparable.”

Provention’s senior leaders made “glowing and self-congratulatory” statements touting the imminent rollout of teplizumab, a proposed treatment for type 1 diabetes, and comparing it ...