Delcath Systems Inc., Investment Losses
The White Law Group is investigating potential securities claims involving broker-dealers who may have unsuitably recommended Delcath Systems Inc., to investors.
Delcath Systems, Inc., an oncology company, reportedly focuses on the treatment of primary and metastatic liver cancers. It develops and commercializes CHEMOSAT and Melphalan Hydrochloride for Injection, which is a proprietary product used with the Delcath Hepatic Delivery System, according to MarketWatch.
According to MarketWatch, as of November 15, 2020, the share price of Delcath Systems Inc. has dropped more than -50% in the past year.
The problem with pharmaceutical and biotech investments such as Delcath Systems, Inc., is that they typically involve a high degree of risk. The research and development process for pharma companies often involves costly and lengthy testing trials that yield specific data. If the expected data or end points are not met, that could be bad news for investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.