Shareholder Class Action Filed Against Encysive Pharmaceuticals By The Law Firm Of Schiffrin & Barroway, LLP

2006-10-11

RADNOR, Pa., Oct. 10 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of Texas on behalf of all securities purchasers of Encysive Pharmaceuticals Inc. ("Encysive" or the "Company") from February 19, 2004 through March 24, 2006, inclusive (the "Class Period"). If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com. The Complaint charges Encysive and certain of its officers and directors with violations of the Securities Exchange Act of 1934. More 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 stride tests involving Thelin failed to demonstrate a statistically significant advantage over Bosentan, another drug used to treat pulmonary arterial hypertension ("PAH"); (2) that, in order to portray Thelin's supposed superiority, defendants manipulated the stride tests to achieve statistically significant results; (3) that defendants' claims regarding the potential market for Thelin were based upon overinflated patient numbers; (4) that, as a result of the defendants' manipulations, United States Food and Drug Administration ("FDA") approval for Thelin would not be forthcoming because the FDA would require additional clinical trials before approving the drug; and (5) as a result of the above, the Company's statements concerning Thelin were lacking in any reasonable basis when made. On March 24, 2006, after the market closed, Encysive stunned investors when the Company announced that, contrary to its previous statements concerning the bright future of Thelin, the Company's new drug for the treatment of PAH, the approvable letter which it received from the FDA requested additional information concerning Thelin, including a request for additional clinical trial work. On this news, shares of Encysive plummeted $4.48, or 49.3 percent, to close, on March 27, 2006, at $4.60 per share, on unusually heavy trading volume. On July 24, 2006, after the market closed, Encysive announced that one issue raised in the FDA's March 2006 approvable letter concerning Thelin remained unresolved. On this news, shares of Encysive sank an additional $2.49, or 40.3 percent, to close, on July 25, 2006, at $3.69 per share, on unusually heavy trading volume. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit . If you are a member of the class described above, you may, not later than November 27, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action. CONTACT: Schiffrin & Barroway, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at info@sbclasslaw.com Schiffrin & Barroway, LLP CONTACT: Darren J. Check, Esq. or Richard A. Maniskas, Esq., both ofSchiffrin & Barroway, LLP, +1-888-299-7706, +1-610-667-7706, orinfo@sbclasslaw.com Web site:

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