Pomerantz Appointed Lead Counsel in BioLineRx Securities Litigation

On April 3, 2023, U.S. District Judge Brian R. Martinotti, of the District of New Jersey, appointed Pomerantz LLP as Lead Counsel on behalf of Peter Catanese – the Lead Plaintiff, and the class, in In re BioLineRx Sec. Litig, 23-cv-41 (D.N.J.). This securities class action alleges that BioLineRx Ltd. (“BioLineRx” or the “Company”) misled investors regarding its ability to finance the development and commercial launch of products in its pipeline.

BioLineRx is a pre-commercial-stage biopharmaceutical company focused on oncology. The Company’s lead product candidate is Motixafortide, a stem cell mobilization treatment for patients with multiple myeloma (plasma cell cancer).

Allegations against BioLineRx include that: (i) the Company failed to disclose that it was not financed adequately enough to develop Motixafortide while advancing other pipeline programs at the same time; and (ii) BioLineRx would require a $40 million loan and a $15 million securities offering in order to facilitate the commercial launch of Motixafortide.

On September 15, 2022, BioLineRx announced that it had entered into a loan agreement with Kreos Capital VII Aggregator SCSP (“Kreos”), under which Kreos would “provide the Company with access to term loans in an aggregate amount of up to $40 million.”  Then, on September 19, 2022, BioLineRx announced its entry into definitive agreements with several institutional investors for the issuance and sale of 13,636,365 American Depositary Shares (“ADSs”) and warrants to purchase up to 13,636,365 ADSs at a combined purchase price of $1.10 per ADS and associated warrant. BioLineRx stated that the offering’s gross proceeds, expected to be $15 million, would be used to facilitate the commercial launch of the Company’s Motixafortide product. 

On this news, BioLineRx’s share price fell 33.7%.