Regardless of whether or not you are an Aradigm Corporation (NASDAQ:ARDM) shareholder, it is crucial that the entire marketplace becomes aware of the latest news surrounding the Hayward, California-based specialty pharmaceutical company.
Despite hitting a new 52-week high on December 29, things have turned sour for Aradigm Corporation as the stock has plunged on news that Bronstein, Gewirtz & Grossman, LLC has launched an investigation of the biopharmaceutical company.
At the time of writing, Aradigm Corporation is trading at $3.70, which puts the ARDM stock down $2.28, or 38.13%.
For those who don’t know, Aradigm Corporation focuses primarily on developing drugs that are delivered by inhalation. Its main focus is to create inhalation drugs that will help to both prevent and treat life-threatening respiratory diseases.
So, what is this investigation about? Well, Bronstein, Gewirtz & Grossman, LLC is reportedly looking into whether the company, under the leadership of CEO Igor Gonda, knowingly went against certain Sections federal securities laws.
The announced investigation definitely played a part in the stock’s plunge, but it can also be cited due to the fact that the FDA today announced that it will look into the company’s New Drug Application for Linhalig on January 11 at the Antimicrobial Drugs Advisory Committee.
The firm, Bronstein, Gewirtz & Grossman, has asked the public to come forward and visit their website if anyone has any information that is relevant to the investigation.
There’s no doubt in my mind that Aradigm Corporation shareholders are in a bit of a panic today, and it’s probably not the way they wanted to start off the trading week, but only time will tell how this investigation is going to play out.
It’s going to be very important for investors to keep checking in on the company, as well as the FDA, to see if either disclose any more information that could indicate whether or not the stock is going to keep declining.
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