BiondVax Pharmaceuticals: Securities Investigation
The White Law Group is investigating potential claims involving brokerage firms for the unsuitable sale and recommendation of investments in BiondVax Pharmaceuticals (now known as Scinai Immunotherapeutics Ltd – ADR).
The company’s common shares of common stock are listed on the Nasdaq Capital Market under the symbol “SCNI”
Beginning in May 2015 through December 2022, BiondVax offered shares of its common stock for sale to investors. As of February 28, 2024, the average post offering return was –96.62%.
According to MarketWatch, shares of SCNI have declined –74.48% in the past 12 months.
Background and Latest News BiondVax (Scinai Bioservices)
Israeli biotech company BiondVax Pharmaceuticals, which went public in 2015, has rebranded as Scinai Immunotherapeutics following significant changes, including a shift in focus and the appointment of a new CEO in 2021. Originally focused on a universal flu vaccine, the company now emphasizes early-stage development of an inhaled COVID-19 therapy, a strategic autoimmune partnership with Max Planck Innovation, and a new CDMO business, now named Scinai Bioservices.
The rebranding reportedly aims to reflect the company’s fresh start and new direction. Scinai has faced challenges, such a Nasdaq deficiency letter for not meeting minimum stockholders’ equity requirements. This rebranding follows a trend of biotech companies undergoing name changes as part of a strategic reset after previous setbacks.
Risks Associated with Pharmaceutical and Biotech investments
Regulatory Risks – Pharmaceutical companies are heavily regulated by agencies such as the FDA in the United States and the EMA in Europe. Approval processes for new drugs are lengthy and uncertain. Failure to get approval or delays in approval can severely impact a company’s stock price.
Research and Development (R&D) Risks – The pharmaceutical industry relies heavily on the successful development of new drugs. High R&D costs do not guarantee a successful outcome, and many drug candidates fail during clinical trials.
Market Competition – The pharmaceutical industry is highly competitive. Companies face competition from other pharmaceutical companies, as well as from generic drug manufacturers once patents expire. This can impact market share and profitability.
Patent Expiry – Pharmaceutical companies rely on patents to protect their products. When a patent expires, generic manufacturers can produce cheaper versions of the drug, leading to a significant drop in sales and revenue for the original manufacturer.
Broker Responsibilities and Investor Protections
Broker dealers are required to conduct thorough due diligence on any investment they recommend and ensure that all recommendations are suitable for their clients. Firms that fail in this duty may be held liable for investor losses through FINRA arbitration claims.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to disclose the associated risks adequately, they may be found liable for investment losses in a FINRA arbitration claim. Fortunately, FINRA provides an arbitration forum for investors to resolve such disputes.
Class Action vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
Free Consultation
If you have suffered investment losses in BiondVax Pharmaceuticals, you may have recovery options. The securities attorneys at The White Law Group offer free consultations and can be reached at 1-888-637-5510.
About The White Law Group
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors across the country in claims against their brokerage firms.
FAQ’s
1. Can I recover losses from investing in BiondVax Pharmaceuticals (now Scinai Immunotherapeutics)?
Yes. If your broker recommended BiondVax (SCNI) without fully explaining the risks or if the investment was unsuitable for your financial situation, you may be eligible to recover your losses through a FINRA arbitration claim. The company’s shares have lost over 96% of their value on average since their offerings between 2015 and 2022.
2. Why is investing in biotech companies like BiondVax/Scinai risky?
Biotech investments carry significant risks due to high research and development costs, strict regulatory approval processes, competition, and patent challenges. SCNI has also faced financial setbacks, a Nasdaq deficiency notice, and major business changes. As of February 2024, the stock had declined over 74% in the previous 12 months.
3. Should I file an individual FINRA arbitration claim or join a class action lawsuit?
If your investment losses in BiondVax/Scinai are significant (typically over $100,000), an individual FINRA arbitration case may offer a better chance of recovery. Class actions are more appropriate for smaller claims. The White Law Group can help assess your case and explain the best legal path during a free consultation.
