Apellis Pharmaceuticals (NASDAQ:APLS) shares plunged Monday on the back of a short report from Citron Research, which said the "happy days are over" for the company.
The short-selling firm said it has "reason to believe that CEO Cedric Francois is not being honest with Wall St. about the report cases of vasculitis" regarding the company's drug Syfovre.
Citron Research pointed to the first meeting of the American Academy of Ophthalmology in San Francisco since the approval of Syfovre, where the drug was discussed.
The firm said it is highly likely that more will emerge about Apellis and Syfovre, and they believe "legal action seems imminent" and "it won't be surprising if the FDA steps in with a warning label following a more thorough review of the drug."
APLS shares are currently down more than 8% following the report, trading around the $43 per share mark. The stock hit a low of $41.19 earlier in the session.