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BioVie Pharma

Kurta Law is investigating brokers who recommended that their clients purchase shares of BioVie Pharma. This investment came with substantial risks that made it potentially unsuitable for many investors. These risks appear in the prospectus, the SEC filing that companies use to disclose their business strategy and related risks prior to offering securities for sale. Unsuitable investments violate FINRA Rule 2111 and Regulation Best Interest, and investors who incur losses may be able to recover via FINRA arbitration.

If your broker recommended that you invest in BioVie Pharma, you may have a claim against your brokerage firm through FINRA arbitration.  FINRA arbitration offers a quicker and cheaper remedy for investors than suing in civil court. Contact (877) 600-0098 or email to speak to a securities attorney for free today.

What is BioVie Pharma?

According to its website, BioVie Pharma is a biotechnology company developing pipeline molecules that it claims will be instrumental in the treatment of Alzheimer’s and Parkinson’s. Additionally, BioVie is currently attempting to develop a novel formulation of the drug terlipressin, a blood pressure medication, according to the company.

At the time the prospectus was filed, BioVie Pharma was reportedly working on developing NE3107, an inflammatory inhibitor that the company claimed could slow the development of neurological diseases. BioVie was also beginning trials on BIV201, its terlipressin variant that it believed capable of treating cirrhosis according to the company.

Investors should also know that BioVie Pharma is registered as a smaller reporting company, meaning that it can make more limited disclosures in its prospectus. Less available information can mean more risk.

BioVie Pharma Stock

BioVie Pharma (BIVI) investments involve a high degree of risk, according to the company’s prospectus. On August 09, 2021, the stock closed at $9.00 per share, and on April 2, 2024, the stock closed at $0.5254 per share. This massive drop in value was not surprising, given the risks disclosed in the company’s prospectus.

Risks Associated With BioVie Pharma Investments

Brokerage firms that approve an investment are required to understand the risks associated with an investment. Furthermore, brokers must accurately represent the risks associated with certain investments.

The prospectus states at the beginning of the “Risk Factors” section: “We have no products approved for commercial sale and, to date, we have not generated any revenue. Our ability to generate revenue depends heavily on (a) successful completion of one or more development programs demonstrating in human clinical trials that BIV201 and NE3107, our product candidates, are safe and effective; (b) our ability to seek and obtain regulatory approvals, including, without limitation, with respect to the indications we are seeking; (c) successful commercialization of our product candidates; and (d) market acceptance of our products. There are no assurances that we will achieve any of the forgoing objectives.”

The theories behind the development of both BIV201 and NE3107 were yet unproven, according to the company. And before commercialization, BioVie would need to obtain necessary regulatory approvals. Compliance with regulations can be time-consuming and could cut into the profitability of the drug overall.

At the time of the prospectus, NE3107 had only recently been approved by the FDA for clinical trials in patients suffering from neurological diseases, trials which the company itself admits were not guaranteed to show that the product was safe. Additionally, the FDA’s approval of the new trials was controversial, sparking pushback from the medical community as well as Congressional investigations.

Other Risks Associated with Commercialization:

The risks associated with this type of investment do not end in the laboratory. Besides the scientific proof that BioVie still required, the prospectus stated that it would have to overcome the following business hurdles to successfully commercialize.

  • Securing substantial additional funding.
  • Developing and maintaining successful strategic relationships.
  • Building a strong intellectual property portfolio.
  • Successfully developing new products.
  • Gaining broad market acceptance for product candidates.
  • Keeping up with the rapid technological development within the biopharmaceutical industry.
  • Building sales and marketing personnel in order to sell its products, which the company did not have.

Failure of any one of these goals could result in a total business failure and a complete loss for investors.

ThinkEquity Underwriter

ThinkEquity served as the underwriter of BioVie Pharma. Investors should know about this broker’s potential conflicts of interest. An underwriter should keep potentially overly risky investments from trading on the public stock market. But because underwriters make money by bringing new stocks to market, they may have a motivation to overlook certain risks.

What Can I Do If I Suffered Losses?

If you lose money investing in BioVie Pharma, consider reaching out to a Kurta Law securities attorney. Our securities attorneys have 5-star reviews on Google and a proven track record when it comes to securing fair settlements for our clients. Call (877) 600-0098 or email