Ventyx Biosciences Inc. Litigation Report

News Page

Published April 9, 2024

Case Introduction

Yuksel v. Ventyx Biosciences, Inc., et al 3:24-cv-00415-AGS-DDL

On March 1, 2024, investors sued Ventyx Biosciences, Inc. (“Ventyx” or the “Company”) in United States District Court, Southern District of California.

The federal securities class action alleges that plaintiffs acquired Ventyx stock pursuant and/or traceable to the Offering Documents (as defined in the complaint) issued in connection with the Company’s initial public offering conducted on or about October 21, 2021 (the “IPO” or “Offering”); and/or between October 21, 2021 and November 6, 2023 (the “Class Period”).

Plaintiffs are now seeking for financial compensation for financial losses incurred upon public revelation of the Company’s alleged negligence and/or misconduct during those times. To learn whether you may be eligible for a recovery under this class action, go to:

Summary of the Allegations

Company Background

Ventyx (NASDAQ:VTYX) is a self-described clinical-stage biopharmaceutical company.

As such, the Company says it concentrates its efforts on  developing innovative oral medicines for use in the treatment of autoimmune and inflammatory disorders. The Company also believes its  “ability to efficiently discover and develop” distinct drug candidates will allow it  to tackle “important unmet medical needs. Specifically, the Company claims it will be able to do so  with  oral therapies that “shift the immunology markets from injectables to oral drugs.”

According to the complaint, Ventyx’s lead clinical product candidate is VTX958, a selective allosteric tyrosine kinase type 2 inhibitor for psoriasis, psoriatic arthritis, and Crohn’s disease. As also detailed in the complaint, the Company Ventyx launched a Phase 2 clinical trial of VTX958 for the treatment of moderate to severe plaque psoriasis (the “Phase 2 SERENITY Trial”) two years ago.

Summary of Facts

The lawsuit alleges negligent preparation of the Offering Documents. As a result, they contain untrue statements of critical facts, but lack corrective statements and legally required disclosures.

It also alleges that the Company and three of its senior officers (the “Exchange Act Individual Defendants”) deceived investors by lying and withholding truthful information about Ventyx’s business practices and prospects during the Class Period.

In particular, they are accused of omitting truthful information about the efficacy of VTX958  in the treatment of psoriasis, and its clinical and/or commercial prospects, from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Ventyx stock to trade at artificially inflated prices during the time in question.

The truth came out after the markets closed on November 6, 2023. That’s when Ventyx issued a press release announcing results from the Phase 2 SERENITY Trial. In this  context, the Company disclosed that, “[a]lthough the trial achieved its primary endpoint, the magnitude of efficacy observed did not meet our internal target to support advancement of VTX958 in plaque psoriasis.” Accordingly, the Company said it would “terminate ongoing activities in the Phase 2 plaque psoriasis trial effective immediately” and “terminate the ongoing Phase 2 trial of VTX958 in psoriatic arthritis.”

A closer look…

As alleged, the Company and/or Exchange Act Individual Defendants repeatedly made false and misleading public statements throughout the Class Period.

In a press release issued at the beginning of the Class Period, for instance, the Company’s CEO (an Exchange Act Individual Defendant) stated in pertinent part: “We believe our capital position, supplemented by funds raised via our October IPO, provides us the opportunity to advance our clinical pipeline towards multiple important data catalysts.”

Then, in a March 23, 2022 press release, the Company’s CEO stated in pertinent part: “We believe VTX958 has potential to be a best-in-class allosteric TYK2 inhibitor, with development opportunities in multiple immune-mediated diseases encompassing large markets currently dominated by biologics.”

Lastly, during an earnings call held on May 12, 2022, the Company’s CEO stated in relevant part: “So let me begin with VTX958, our novel allosteric TYK2 inhibitor. Based on its preclinical profile that we have disclosed earlier, VTX958 is highly selective for TYK2. It shows no measurable inhibition of all other JAK isoforms.”

Actions You May Take

If you have purchased the Company’s stock for any reason described herein, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole. To learn more about your options, go to:

NOTE: The deadline to file for lead plaintiff in this class action is April 30, 2024. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court.