Adaptimmune Therapeutics PLC (NASDAQ:ADAP), a biotechnology firm specializing in biological products, received a notice from Nasdaq on Friday stating that the company does not meet the minimum bid price requirement. The company's American Depositary Shares (ADS) have been trading below the $1.00 threshold for 30 consecutive business days, breaching Nasdaq's Listing Rule 5450(a)(1).
The notice does not immediately impact the trading of the company's ADSs on The Nasdaq Global Select Market. Adaptimmune has been granted a 180-day period, until April 30, 2025, to regain compliance. To achieve this, the closing bid price of Adaptimmune's ADSs must reach $1.00 or more per share for at least ten consecutive business days within this timeframe.
If compliance is not regained by the deadline, Adaptimmune may be eligible for an additional 180-day period by transitioning to The Nasdaq Capital Market, provided it meets all other initial listing requirements except for the bid price. The company would need to submit written notice of its plan to remedy the deficiency during the second grace period.
Should Adaptimmune fail to meet the minimum bid price requirement or otherwise become ineligible for continued listing, Nasdaq may initiate delisting proceedings. While Adaptimmune would have the right to appeal any delisting decision, there is no guarantee that an appeal would be successful.
In response to the notice, Adaptimmune has stated its intention to monitor the bid price of its ADSs closely and evaluate possible actions to regain compliance with the Nasdaq listing standard.
This development is based on the recent SEC filing by Adaptimmune Therapeutics PLC.
In other recent news, Adaptimmune Therapeutics PLC has finalized its settlement with Genentech Inc., resolving all disputes related to their previous collaboration. The settlement, which includes a payment of $12.5 million to Adaptimmune, marks the end of their collaborative chapter. These recent developments also highlight Adaptimmune's launch of Tecelra, its first engineered cell therapy product for synovial sarcoma, announced during its second-quarter 2024 earnings call. The company reported a robust financial position, with $215 million in total liquidity. In addition, Adaptimmune plans to activate 6 to 10 authorized treatment centers for Tecelra and is progressing with its SURPASS-3 trial for lete-cel. The company anticipates consistent operating expenses in line with the first half of 2024. Lastly, Adaptimmune is collaborating with Galapagos (NASDAQ:GLPG) for a proof-of-concept trial in head and neck cancer, with Medicare coverage already in place for lete-cel.
InvestingPro Insights
Adaptimmune Therapeutics' current market situation reflects the challenges highlighted in the Nasdaq notice. According to InvestingPro data, the company's stock has experienced significant declines, with a 21.25% drop in the past month and a 42.87% fall over the last three months. This downward trend aligns with the company's struggle to maintain the minimum bid price requirement.
Despite these challenges, InvestingPro Tips indicate that Adaptimmune holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. This financial position could provide some flexibility as the company works to address the Nasdaq compliance issue.
Additionally, analysts anticipate sales growth for Adaptimmune in the current year, which could potentially help improve investor sentiment. However, it's worth noting that the company is not expected to be profitable this year, and it has been quickly burning through cash.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Adaptimmune Therapeutics, providing a deeper understanding of the company's financial health and market position.
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