NeuroBo Pharmaceuticals (NRBO) Merges with Gemphire Therapeutics (Nasdaq: GEMP) on December 31, 2019.
The White Law Group is investigating potential securities claims involving broker-dealers who may have unsuitably recommended Gempshire Therapeutics to investors.
Gemphire Therapeutics filed a form D to raise capital from investors in 2017. The total offering amount sold was purportedly $12,540,704.
NeuroBo Pharmaceuticals, Inc., a clinical-stage biotechnology company focused on multimodal, disease-modifying therapies for neurodegenerative diseases,completed a merger with Gemphire Therapeutics (Nasdaq: GEMP) on December 31, 2019. Shares of the Combined Company, NeuroBo Pharmaceuticals, began Trading on the Nasdaq Exchange Under the Symbol NRBO on December 31, 2019.
According to Market Watch as of November 15, 2020, shares of NRBO are down more than -30% YTD.
The problem with pharmaceutical and biotech investments 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.
