Law suits face Sirtex
SIRTEX Medical is facing two class actions over allegations the biotech company engaged in misleading and deceptive conduct in relation to missed sales forecasts.
Law firms William Roberts Lawyers and Maurice Blackburn Lawyers are each inviting Sirtex shareholders to join separate class actions against the company.
William Roberts Lawyers alleges Sirtex had no reasonable basis for a statement in August last year that it expected double-digit sales growth for its SIR-Spheres Y-90 radiation therapy for the year to June 2017.
Sirtex shares plunged 37 per cent last December 9 after the company warned of deteriorating sales. Dose sales in the first half of the past financial year grew by only 5.6 per cent.
SIR-Spheres Y-90, a targeted radiation therapy, is Sirtex’s lead product and is approved for supply in Australia, the European Union and the US.
It accounts for almost all of Sirtex’s revenues.
William Roberts Lawyers principal Bill Petrovski said Sirtex’s own communications to the market after December 9 confirmed the company had a very short window of visibility over sales.
“How could it then reasonably predict double-digit sales growth over a six-month or 12month period,” Mr Petrovski asked.