Spector, Roseman & Kodroff, P.C. Files Class Action Suit

Press Release:

Spector, Roseman & Kodroff, P.C. Files Class Action Suit Against EPIX Pharmaceuticals

Press Release
News Article February 2005

PHILADELPHIA, Feb. 9 /PRNewswire/ -- The law firm of Spector, Roseman & Kodroff, P.C. announces that it filed a securities class action lawsuit in the United States District Court for the District Court of Massachusetts, on behalf of purchasers of the common stock of EPIX Pharmaceuticals, Inc. (f/k/a EPIX Medical, Inc.) (collectively referred to as "EPIX" or the "Company") between July 10, 2003 through January 14, 2005, inclusive (the "Class Period").

The Complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission during the Class Period. Specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that non-contrast MRA comparator scans used in the Phase III trials varied significantly which caused the efficacy of MS-325 to be compromised; (2) that the Company's Phase III trials generated a large number of uninterpretable images, which too caused the efficacy of MS-325 to be compromised; (3) that problems described above resulted in varying and questionable statical treatments of the images seen during the Phase III trial; and (4) that as result of the above, the likelihood of MS-325's NDA being approved was highly unlikely.

On January 14, 2005, EPIX announced that the U.S. Food and Drug Administration ("FDA") had completed its review of the new drug application for MS-325 (gadofosveset trisodium), and found it to be approvable. However, in the approvable letter, the FDA requested additional clinical studies to demonstrate efficacy prior to approval. As a result of this announcement, shares of EPIX fell $3.98 per share or 27.17 percent, to close at $10.67 per share, on unusually high trading volume.

If you purchased EPIX securities during the Class Period, you may, no later than March 28, 2005, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.

Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.

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