Athenex Investor Loses Suit Over FDA Prospects (Correct)

The Athenex Inc. bankruptcy estate shouldn’t face claims it misled investors about its metastatic breast cancer treatment’s clinical trial success and new drug application, a federal judge said.

Lead plaintiff John McKenzie failed to sufficiently allege Athenex intended to deceive shareholders about Oraxel’s phase 3 clinical trial results and likelihood of US Food and Drug Administration approval, Judge Lawrence J. Vilardo said for the US District Court for the Western District of New York.

The case had been stayed, with a motion to dismiss pending, as Athenex went through Chapter 11 bankruptcy proceedings and dissolved in 2023.

McKenzie and ...