SHAREHOLDER ALERT: Zosano Pharma Corp. Sued for Violations of the Federal Securities Laws; Investors Who Lost Money Should Contact Block & Leviton LLP

BOSTON, MA / ACCESSWIRE / December 1, 2020 / On September 30, 2020, Zosano Pharma Corp. (NASDAQ:ZSAN) stunned the market when it announced that it had received "a discipline review letter (DRL) from the U.S. Food and Drug Administration" in connection with Zosano's new drug application for Qtrypta™. Per Zosano's announcement, the FDA "raised questions regarding unexpected high plasma concentrations of zolmitriptan observed in five study subjects from two pharmacokinetic studies and how the data from these subjects affect the overall clinical pharmacology section of the application." The FDA further "raised questions regarding differences in zolmitriptan exposures observed between subjects receiving different lots of Qtrypta in the company's clinical trials." On this news, the price of Zosano stock fell approximately 57%, to close at just 70 cents per share on October 1, 2020.

Then on October 21, 2020, Zosano announced that it had received a Complete Response Letter from the FDA, in which the FDA recommended that Zosano conduct a repeat bioequivalence study between three of the lots used during development. Shares of Zosano common stock fell another 27%, to close at just $0.4441.

A lawsuit alleging violations of federal securities laws has been filed against Zosano and certain of its officers and directors. The suit alleges that beginning on February 13, 2017, Zosano misled investors regarding Qtrypta, including that the FDA was likely to require further studies to support approval of Zosano's new drug application. The lawsuit was filed in the U.S. District Court for the Northern District of California, and is captioned Carr v. Zosano Pharma Corp., et al., No. 20-cv-07625.

If you purchased or acquired shares of Zosano between February 13, 2017 and September 30, 2020 and have questions about your legal rights or possess information relevant to this matter, please contact Block & Leviton attorneys at (617) 398-5600, via email at cases@blockleviton.com, or at https://www.blockleviton.com/cases/zsan. The deadline to move the Court to be appointed lead plaintiff is December 28, 2020.

Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country's financial markets. The firm represents many of the nation's largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm's lawyers have recovered billions of dollars for its clients.

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SOURCE: Block & Leviton LLP