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Context Therapeutics

Kurta Law is investigating brokers who recommended that their clients purchase shares of Context Therapeutics, Inc. This investment came with substantial risks that may have made it 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 the 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 Context Therapeutics, you may have a claim against the 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 info@kurtalawfirm.com to speak to a securities attorney for free today.

What is Context Therapeutics?

According to its prospectus, Context Therapeutics, Inc. is a clinical-stage biopharmaceutical company that focuses on oncology drug development for female cancers, including breast, ovarian, and endometrial (uterine) cancer.

Investors should also know that Context Therapeutics is registered as an emerging growth company, meaning that it can make limited disclosures in its prospectus. Less information generally means more risk.

Context Therapeutics Stock

Context Therapeutics, Inc. (CNTX) investments involve a high degree of risk, according to the company’s prospectus. The company debuted at $5.00 per share and recently traded at $1.30 per share. This massive drop in value was not surprising given the risks disclosed in the company’s prospectus.

Risks Associated with Context Therapeutics Stock

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 never been profitable and may never achieve or maintain profitability.”

Context Therapeutics’ limited operating history creates difficulty in evaluating current business and future prospects which increases the risk to your investment. The company’s business is dependent on the successful development, regulatory approval, and commercialization of product candidates, ONA-XR and CLDN6xCD3 bsAb, which were in the early stages of development at the time of the prospectus. Even if the product candidates proved effective in clinical trials and cleared regulatory hurdles, there was no guarantee that Context Therapeutics would successfully bring the drug to market or that there would be significant sales.

Other Risks Associated with Commercialization:

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

  • Securing substantial additional funding.
  • Building a strong intellectual property portfolio.
  • Gaining broad market acceptance for product candidates.
  • Building and maintaining appropriate clinical sales, distribution, and marketing capabilities through third parties.

ThinkEquity Underwriter

ThinkEquity served as the underwriter of Context Therapeutics, Inc. 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 be motivated to overlook certain risks.

What Can I Do If I Suffered Losses?

If you lose money due to your investment in Context Therapeutics, 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 info@kurtalawfirm.com.