Advaxis

According to its stock prospectus, (ADXS) is a clinical development-stage biotechnology company. The company purportedly aimed to develop a breakthrough treatment for HPV cancers. The company faced a huge amount of uncertainty and similarly daunting risk for the company’s investors. Aegis helped Advaxis conduct an offering of stocks and warrants when the company had a history of substantial losses and did not have a significant operating history that investors could use to predict the company’s future performance.

When Aegis Capital Corp. served as the underwriter for Advaxis stock, the company was developing cancer immunotherapy drugs and did not yet have proof that the drugs would work or be commercially successful. There were huge risks associated with investing in Advaxis and the company’s stock could easily lose an investor’s principal investment. As of today, Advaxis trades for less than $1 per share.

In January 2023, Advaxis completed a merger with Ayala Pharmaceuticals. It still trades under the ticker ADXS as of April 29, 2024. 

Aegis Capital Corp and Advaxis

Kurta Law is investigating Aegis Capital Corp for its underwriting of high-risk investments. Brokerage firms have a conflict of interest when they recommend stocks that they underwrite since firms make money off of bringing stocks to market.

Aegis Capital Corp brokers who recommended these shares should have been aware of the risks associated with this type of drug. These stocks would not have been suitable for the majority of investors because they are high-risk. Recommending high-risk investments to ordinary investors violates Regulation Best Interest, which requires that brokers have a reasonable basis for making their recommendations.

If you lost money on shares of Advaxis, contact a securities attorney for a free case evaluation: (877) 600-0098 or email info@kurtalawfirm.com.

What Are the Risks Associated with Advaxis?

Investing in shares of developmental-stage companies always involves significant risk, as Advaxis states in their prospectus: “Our business and our ability to execute our business strategy are subject to a number of risks of which you should be aware of before you decide to buy our securities.” The prospectus also states, “We are an early development stage biotechnology company with a history of losses and can provide no assurance as to future operating results.” It also warns Advaxis may run out of money and simply be unable to develop any products.

Risks Associated with Orphan Drugs

There are a number of other concerns related to the type of drugs that Advaxis produces. The company states that, “We may not obtain or maintain the benefits associated with orphan drug designation, including market exclusivity.” Orphan drug designation gives certain benefits, like tax credits and market exclusivity, to drugs meant to treat rare diseases. 

Financial Difficulties

The disclosure also states that the company currently has “negative shareholder equity,” meaning that the company owes more to investors than it can currently pay.

There are certain costs associated with drug development that could affect Advaxis’s ability to make money.

Potential Lawsuits

Advaxis states uncertainty that it will be able to protect its intellectual property rights and further states that they may be held liable for infringing on the intellectual property rights of others, leading to costly litigation. Litigation regarding drug patents could also take up substantial time and money.

Advaxis uses dangerous biological materials and could be held liable for any injury or failure to comply with environmental laws and regulations.

Competition with Other Biotechnology Companies

The immunotherapy industry is quite competitive. It is generally difficult for companies like Advaxis to keep up with rapidly changing technologies since larger companies with more financial resources can use the most advanced technology and are also able to attract the most qualified scientific personnel.

Risks Related to Stocks and Warrants

The prospectus specifically warns that the trading price of the common stock can fluctuate substantially.

Do You Have Concerns Related to Your Shares of Advaxis?

If you believe Advaxis was overly risky for your risk profile, consider contacting a securities attorney. Our experienced attorneys regularly take on cases of unsuitable investment recommendations and can help you achieve a fair settlement through FINRA arbitration. Call (877) 600-0098 or email info@kurtalawfirm.com.