Vaccinex to be delisted from Nasdaq over equity shortfall By Investing.com
ROCHESTER, N.Y. – Vaccinex, Inc. (NASDAQ:), a clinical-stage biotechnology company with a current market capitalization of just $9.77 million, is set to be delisted from the Nasdaq Stock Market after failing to meet the exchange’s minimum stockholders’ equity requirement. According to InvestingPro data, the company’s stock has declined over 60% year-to-date, reflecting significant investor concerns. The company, known for its work on neurodegenerative diseases and cancer, received a formal notice from Nasdaq on December 16, 2024, stating that its shares would be suspended from trading starting Wednesday, December 18, 2024.
Vaccinex has been non-compliant with Nasdaq Listing Rule 5550(b)(1), which mandates that companies maintain a minimum of $2.5 million in stockholders’ equity for continued listing. Following the suspension on Nasdaq, Vaccinex expects its common stock to be quoted on the OTC Markets Group under the same ticker symbol, VCNX. InvestingPro analysis reveals concerning financial metrics, including a weak overall financial health score of 1.6 out of 10 and rapidly depleting cash reserves. Subscribers can access 15 additional ProTips and comprehensive financial metrics to better understand the company’s position.
The company’s lead drug candidate, pepinemab, targets SEMA4D, a molecule believed to play a role in neuroinflammation and neurodegeneration, as well as in tumor immunity. Vaccinex has conducted trials in various diseases, including Alzheimer’s and Huntington’s disease, and is exploring pepinemab’s potential in combination therapies for cancer.
Despite the setback with Nasdaq, Vaccinex continues its clinical programs, including collaborations with notable industry partners. The KEYNOTE-B84 study, for instance, is being conducted with Merck (NS:) Sharp (OTC:) & Dohme Corp, a subsidiary of Merck & Co., to evaluate pepinemab in recurrent or metastatic head and neck cancer. Additionally, the company is involved in a study with BAVENCIO® for metastatic pancreatic adenocarcinoma.
The forward-looking statements in the company’s press release highlight the anticipated quotation of Vaccinex’s common stock on the OTC Markets Group. According to InvestingPro Fair Value analysis, the stock appears fairly valued at current levels, though investors should note the company’s negative earnings yield of -190% and concerning cash flow metrics. These factors, along with various other uncertainties, could affect future results. The company’s most recent filings with the Securities and Exchange Commission detail these risks further.
This article is based on a press release statement from Vaccinex, Inc.
In other recent news, Vaccinex, a biotechnology company, secured approximately $2.15 million in a private placement and an additional $6.2 million through agreements allowing the exercise of existing warrants at a reduced price and the issuance of new warrants. The funding will support the company’s ongoing projects, including the SIGNAL-AD Phase 1b/2 clinical trial, which has shown promising results with its lead product, pepinemab, potentially slowing the progression of Alzheimer’s disease.
Vaccinex has also entered into several project agreements with pharmaceutical giants such as Amgen (NASDAQ:), Merck, and Incyte (NASDAQ:), utilizing its ActivMAb technology for antibody discovery. These partnerships aim to advance the development of antibody-based immunotherapies, although the financial details of these agreements remain undisclosed.
However, the company faces potential delisting from the Nasdaq Capital Market due to an equity shortfall. Vaccinex plans to appeal this decision to a Nasdaq Hearings Panel, but the outcome remains uncertain. Despite the potential delisting, Vaccinex continues to explore additional financing opportunities and partnerships for further development of pepinemab. These are recent developments in Vaccinex’s pursuit of Alzheimer’s disease treatment.
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