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BOSTON - Allarity Therapeutics, Inc. (NASDAQ: ALLR), a micro-cap biopharmaceutical company with a market value of $4.39 million in Phase 2 clinical stage, has announced its partnership with Shareholder Intelligence Services, LLC (ShareIntel) to investigate possible illegal naked short selling and other trading irregularities in the company’s stock. The collaboration, announced today, is aimed at safeguarding shareholder interests and promoting transparent trading practices.
ShareIntel will employ its DRIL-Down™ technology to monitor trading activities and identify any unusual short-selling patterns or potential market manipulations. The investigation comes as InvestingPro data shows the stock has lost over 99% of its value in the past year, trading near its 52-week low of $0.68. According to InvestingPro analysis, the stock currently appears undervalued relative to its Fair Value.
Despite maintaining a healthy current ratio of 2.75 and holding more cash than debt on its balance sheet, the company faces significant challenges. Thomas Jensen, CEO of Allarity, stated, "We believe this collaboration with ShareIntel is both timely and appropriate." For deeper insights into Allarity’s financial health and 10+ additional ProTips, consider exploring InvestingPro. The company is focused on ensuring that its shares are traded fairly and without manipulation, particularly as it advances the clinical development of its cancer drug, stenoparib.
Stenoparib, a dual-targeted inhibitor of PARP1/2 and tankyrase 1/2, is currently being developed by Allarity for the treatment of advanced ovarian cancer. The drug has shown potential due to its unique mechanism of action, which involves inhibiting PARP and blocking Wnt pathway activation, a pathway implicated in numerous cancers.
Allarity has the exclusive global rights to develop and commercialize stenoparib and is utilizing its DRP® technology to create a companion diagnostic aimed at identifying patients who would benefit most from the treatment.
The company’s initiative to investigate trading irregularities will include monitoring for violations of the U.S. Securities and Exchange Commission’s Regulation SHO, which sets the rules for short-selling practices. If evidence of market manipulation or illegal short selling is found, Allarity is prepared to take legal action against those responsible.
This effort is based on a press release statement by Allarity Therapeutics and is part of the company’s broader commitment to its shareholders and the integrity of its stock’s trading environment. With earnings expected on March 25, investors can access comprehensive financial analysis and real-time updates through InvestingPro.
In other recent news, Allarity Therapeutics has announced promising results from its Phase 2 trial of stenoparib in advanced ovarian cancer. The clinical data, presented at the Society of Gynecologic Oncology Annual Meeting, showed that some patients experienced significant therapy benefits, with one achieving a complete response lasting over 10 months. The drug was well-tolerated and did not induce the typical bone marrow toxicity seen with first-generation PARP inhibitors, suggesting potential for a broader patient group. Additionally, Allarity Therapeutics has settled an SEC investigation regarding past FDA disclosures, agreeing to a $2.5 million civil penalty without admitting or denying the findings. This settlement allows the company to focus on advancing stenoparib, with plans to initiate a Phase 2 trial in recurrent small cell lung cancer. The company has also introduced a new protocol for its ongoing ovarian cancer trial, aiming to refine patient selection and optimize dosage. The trial will explore stenoparib’s impact on the Wnt pathway, which is involved in various cancers, and assess the Drug Response Predictor platform to identify patients who might benefit the most. Patient enrollment for this trial is expected to begin in the first half of 2025, pending regulatory review.
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