03:02 PM EDT, 09/09/2024 (MT Newswires) -- Agenus ( AGEN ) is being accused of misleading investors in public comments about a combination of two prospective treatments for cancer in a new shareholder suit filed last week in federal court in Massachusetts.

The Boston-area biotech company has been working to develop several new immunotherapies, including its botensilimab and balstilimab monoclonical antibodies, which it combined to measure their potential to treat certain forms of colorectal cancer. It issued interim data from phase 2 testing on July 18 but also said US regulators recommended against Agenus ( AGEN ) seeking accelerated approval for the drug combination because objective response rates reported during the mid-stage study may not translate to survival benefit.

Agenus ( AGEN ) shares plunged almost 59% immediately after the company's July announcement.

The combination of botensilimab and balstilimab "was less effective than (the) defendants had been led investors to believe," the plaintiffs said in their complaint, and that, accordingly, "their regulatory and commercial prospects were overstated."

Agenus ( AGEN ) didn't immediately respond to a request for comment from MT Newswires.

Agenus ( AGEN ) shares were over 4% higher in recent afternoon trading on Monday.

Price: 5.16, Change: +0.21, Percent Change: +4.24