We are investigating Magenta Therapeutics, Inc. (MGTA) (“Magenta” or the “Company”) for potential violations of the federal securities laws.
On June 11, 2020, Magenta issued a press release announcing the Company’s “strategic decision to discontinue enrollment in Phase 2 study of MGTA-456 in inherited metabolic disorders (IMDs) and prioritize resources toward stem cell mobilization and conditioning programs.” Magenta advised that its “decision was the result of several factors: enrollment challenges common to rare disease populations, particularly during the COVID-19 pandemic; a growing understanding in the field of the current challenges of allogeneic stem cell transplant in patients with non-malignant diseases, such as IMDs; and feedback from the FDA on endpoints and clinical trial design for registration.” On this news, Magenta’s stock price fell sharply during intraday trading on June 11, 2020, damaging investors.