NephroGenex

Kurta Law is investigating broker recommendations of NephroGenex investments (NASDAQ:NRX). This investment would have been unsuitable for many investors due to its high degree of risk. Overly risky investments violate securities rules and regulations, including FINRA Rule 2111. FINRA Rule 2111 requires investment recommendations to fit the investor’s risk tolerance, as well as their financial goals, age, tax status, and other essential characteristics.  

If you believe you suffered losses as a result of broker misconduct and unsuitable investment recommendations, contact the investment fraud attorneys at Kurta Law. Call (877) 600-0098.  

About NephroGenex 

According to the prospectus, NephroGenex is a pharmaceutical company focused on the development of therapeutics to treat kidney disease, including a drug that would serve as a broadly acting inhibitor of pathogenic oxidative chemistries, which are elevated in diabetic patients.  

The Offering  

The prospectus dated February 11, 2014, announced the initial public offering of 3,100,000 shares of NephroGenex. No public markets existed for these shares previously. Each share cost $12.00.  

As of April 10, 2024, shares of NRX trade for $5.53 per share. This sharp drop in price is not surprising, given the risks disclosed in the prospectus.  

Risks Associated with NephroGenex  

The following risks are clearly disclosed in the prospectus. Brokers either knew or should have about these risks.  

No Revenue, No Products 

At the time of the prospectus, NephroGenex had never been profitable. It also had no products approved for commercial sale and had not generated any revenue from product sales.  

Additional Funding 

NephroGenex required further funding for clinical trials, which are expensive. They would also need more funding in order to commercialize future products. Additional funding may not be available when NephroGenex wants it. 

Recurring Losses  

NephroGenex faced recurring losses from operations, which raised concerns about its ability to continue as a going concern.  

Regulatory Approval  

NephroGenex depended on the successful commercialization of a drug called Pyridorin. Without regulatory approval of this drug, Nephrogenex may not be able to generate any revenue.  

Delays 

Delays in clinical trials could result in increased costs and delay regulatory approval.  

Side Effects 

Clinical trials could uncover undesirable side effects, which could delay regulatory approval.  

Aegis Capital Corp. Underwriting    

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm. 

Kurta Law Can Help  

Contact Kurta Law today for a free case evaluation – keep in mind that you have a limited time to file a claim. Our attorneys do not collect a fee unless we win your case. If you have any questions, call (877) 600-0098 or email info@kurtalawfirm.com.