Securities fraud class action litigation has been filed on behalf of investors in Horizon Pharma PLC (“Horizon” or the “Company”) (Nasdaq: HZNP). If you purchased or otherwise acquired Horizon securities between March 13, 2014 and February 26, 2016, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than May 9, 2016.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the actions. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
Horizon investors may choose to have Lieff Cabraser review their claim by completing the contact form below. You can also call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358 to discuss the litigation.
Background on the Horizon Securities Class Litigation
Horizon is a biopharmaceutical company focused on orphan drug development. Its current business model involves acquiring other drug companies, and then marketing and selling the acquired products using specialty pharmacies called pharmacy benefit managers (“PMBs”), with which it has special relationships. As part of its business model, Horizon drastically increased the price of the drugs it obtained and, as a result, lost its Medicare, Medicaid, and cash business, which it offset through its Prescriptions-Made-Easy (“PME”) plan. Under that plan, doctors can send their patients’ prescriptions through a PMB partnered with Horizon that directly mails the prescription to the patient the next day. If the patient’s insurance rejects the prescription, Horizon would absorb the cost.
The action alleges that the use of PMBs and the Company’s PME plan was not a sustainable business practice and left Horizon vulnerable to regulatory scrutiny.
On September 23, 2015, Express Scripts Holding Co. – the second largest U.S. PMB – publically described Horizon’s price increases as “profiteering.” On this news, Horizon’s stock price dropped $1.90 per share, or 7.4% from a closing price of $25.69 on September 23, 2015, to close at $23.79 per share on September 24, 2015.
On October 19, 2015, The New York Times published an article criticizing Horizon’s business model and PME Program. On this news, the Company’s stock price fell $3.81 per share, or 19.98% from a closing price of $19.07 on October 19, 2015, to close at $15.26 per share on October 20, 2015.
On October 22, 2015, biopharmaceutical Depomed, Inc. issued a statement describing its rejection of an exchange offer from Horizon and detailing: (1) why Horizon’s price increases were not sustainable; (2) how many of Horizon’s drugs had been removed from the largest PMBs; and (3) how the PME Program damaged Horizon’s realized net sales as a percentage of gross sales. On this news, Horizon’s stock price dropped $1.71 per share, or 11.53% from a closing price of $14.83 on October 21, 2015, to close at $13.12 per share on October 22, 2015, on extremely high trading volume.
Finally, on February 29, 2016, Horizon disclosed that it had received a subpoena from the U.S. Attorney’s Office for the Southern District of New York regarding the Company’s use of financial assistance to help patients pay for the Company’s drugs, as well as its sales and marketing activities and relationship with pharmacies. On this news, Horizon’s stock price declined $2.63 per share, or 13.29% from a closing price of $19.79 on February 26, 2016, to close at $17.16 per share on February 29, 2016, on extraordinarily high trading volume.
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