Odonate Therapeutics Must Face Investors’ Chemo Drug Allegations

Odonate Therapeutics Inc. lost a bid to throw out accusations it misled investors about the safety of a new chemotherapy drug after a federal judge in California determined the allegations were enough to move forward.

Investors sufficiently alleged that the pharmaceutical company made materially misleading statements and omissions about the safety of tesetaxel, and that Odonate acted intentionally or with deliberate recklessness, the U.S. District Court for the Southern District of California said.

The investors accused Odonate of failing to tell them about safety issues that came up during a clinical trial and led some patients to drop out, ...