Novum Pharma Files Chapter 11 Bankruptcy Protection
Have you suffered losses investing in Novum Pharma? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Novum Pharma, a Chicago dermatology drug company, reportedly filed for bankruptcy protection on February 6, 2019, according to a press announcement.
The company reportedly made headlines in 2016 for purportedly hiking up its eczema drug prices from $200 to $7,968 for 48-gram tubes of its skin gel Alcortin A.
Novum Pharma reportedly defended its pricing policies at the time, claiming that patients would pay next to nothing for the prescription drug.
While the company reportedly claimed it was having production manufacturing problems, many reports indicate that the company was having issues with Cardinal Health Inc. (NYSE: CAH) and CVS Health Corp. (NYSE: CVS) regarding the price at which the company’s products can be returned to Novum Pharma.
Recovery of Investment Losses
The problem with biopharmaceutical stocks such as Novum Pharma is that they typically involve a high degree of risk. The research and development process for pharma companies often involves costly and lengthy clinical testing trials that yield specific data. If the expected data or end points are not met, the stock can drop drastically.
Without a strong understanding of the company and its basic operations, investors may be looking at serious losses.
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk biopharma stocks, like Novum Pharma to investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If you have concerns regarding investment losses in Novum Pharma, please call the securities attorneys at The White Law Group for a free consultation at 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.