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EFTR.US
id: 1279

Investigation on eFFECTOR Therapeutics

  • eFFECTOR started with high-profile investment from Pfizer. On August 26, 2021, it went public via SPAC merger.
  • In January 2024, the company conducted a direct registered stock offering.
  • On June 24, 2024, less than six months later, the company laid off its employees and decided to wind down its operations without any prior news or warnings of unfavorable clinical trial results.

Case Details:


In 2019, Pfizer published a press release announcing that it had signed an exclusive agreement with eFFECTOR to develop small-molecule drugs.


The press release also stated that eFFECTOR received an upfront payment of $15M and could potentially receive up to $492 million in R&D funding, development milestones, and sales milestone payments.


Then, on January 29 of this year, eFFECTOR Therapeutics announced the closing of its registered direct offering.


The offering included 1,488,834 shares of common stock and short-term warrants at $10.075 per share, raising funds from a new healthcare-focused institutional investor.


After that, on June 24, 2024, eFFECTOR announced that it has terminated its employees and was winding down operations.


Due to non-compliance with Nasdaq listing requirements, the company plans to delist its securities.


Investors are currently investigating whether there were any misleading statements or misconduct by eFFECTOR's board and officers.
Case Status
Attorney Investigation
Alleged Offence
Mismanagement
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
24 June 2024
Collecting participants…

Effector Therapeutics Inc

eFFECTOR Therapeutics, Inc., a biopharmaceutical company, engages in the development of selective translation regulator inhibitors (STRIs) for the treatment of cancer. The company's lead product ca...

    Ticker
    EFTR.US
    ISIN
    US28202V1089
    CIK
    1828522
    Sector
    Healthcare
    Industry
    Biotechnology
    Country
    USA
    Address
    142 North Cedros Avenue, Solana Beach, CA, United States, 92075