Infinity Pharmaceuticals, Inc. (INFI) Case over TNBC Misleading
Infinity Pharma announced the termination of the Merger with MEI Pharma and the ongoing 78% cut in its workforce.
$INFI fell over 85% since January 2022, damaging shareholders.
Investors suspect that Infinity & its Leaders pushed the false narrative that its flagship product was proceeding apace.
On July 24, 2023, Infinity (INFI) announced that the merger was terminated because shareholders of MEI Pharma voted against it.
On this news, $INFI fell over 40%, damaging shareholders.
The next day, Infinity announced a “Value Preservation and Maximization Plan”, whereby it was, among other things, terminating 78% of its workforce.
On February 23, 2023, Infinity announced that it had entered into a merger agreement with MEI Pharma (MEIP). The proposed transaction was all stock, pursuant to which Infinity shareholders will receive shares of $MEIP common stock.
During the Webcast, CEO Perkins stated that Infinity would "prioritize head and neck cancer." No mention was made of breast cancer MARIO-4 and MARIO-P treatments like it never existed, and TNBC was never a priority for eganelisib treatment.
On this news, $INFI plummeted by 49%, wiping out almost half of its market capitalization.
Over a year the Company pushed the narrative that Infinity’s flagship product, eganelisib, was proceeding apace in its clinical studies as a treatment for breast cancer. Specifically, Infinity touted two clinical studies:
MARIO-4, a randomized, double-blind Phase 3 study;
MARIO-P, a platform study to evaluate additional combinations and indications where eganelisib might increase the effectiveness of available therapies.
Now, Investors have reasons to suspect Infinity and its certain executives of misrepresenting to shareholders that Infinity was moving forward on the MARIO4 and MARIO-P studies for breast cancer and that Infinity had multiple partnership options.