Pomerantz Appointed Co-Lead Counsel in NRx Pharmaceuticals Securities Litigation

On April 6, 2022, U.S. District Judge Maryellen Noreika of the District of Delaware appointed Pomerantz LLP as Co-Lead Counsel on behalf of the Co-Lead Plaintiff, and the class, in NRx Pharmaceuticals, Inc., 1:22-cv-00066-MN (D. Del.). This securities action alleges that NRx Pharmaceuticals, Inc. (“NRx” or the “Company”) misrepresented the efficacy and regulatory prospects of ZYESAMI (also known as aviptadil), its investigational pre-commercial drug for the treatment COVID-19 related respiratory failure.

NRx is a clinical-stage pharmaceutical company that develops various therapeutics for the treatment of central nervous system disorders and the treatment and prevention of life-threatening pulmonary diseases, including ZYESAMI.

Specifically, allegations against NRx include that: (i) the Company’s Emergency Use Authorization (“EUA”) application to the U.S. Food and Drug Administration (“FDA”) for ZYESAMI contained insufficient data regarding the potential benefits and risks of ZYESAMI; and (ii) accordingly, the FDA was unlikely to approve the ZYESAMI EUA application in its present form.

On November 4, 2021, NRx announced that the FDA had declined to issue an EUA for ZYESAMI because the FDA stated that there was “insufficient data regarding the known and potential benefits of the medicine and the known and potential risks of ZYESAMI in patients suffering from Critical COVID-19 with respiratory failure.”

On this news, NRx’s share price fell $2.27 per share, or 25.4%, to close at $6.65 per share on November 5, 2021.