September looms as a risk month for stocks, Yardeni says
In a challenging year for Relmada Therapeutics (NASDAQ:RLMD), the company’s stock has plummeted to a 52-week low, trading at just $0.34. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 6.89 and more cash than debt on its balance sheet. This significant downturn reflects a staggering 1-year change with the stock value eroding by -92.61%. Investors have watched with concern as RLMD shares have steadily declined, with the market cap now at just $10.53 million. While analyst price targets range from $0.60 to $1.00, suggesting potential upside, the sharp drop underscores the volatility faced by the biopharmaceutical sector and raises questions about Relmada’s strategy moving forward. InvestingPro subscribers can access 6 additional key insights and a comprehensive Pro Research Report for deeper analysis of RLMD’s prospects.
In other recent news, Relmada Therapeutics faces potential delisting from Nasdaq due to not maintaining the $1 minimum bid price over the past 30 consecutive business days. The pharmaceutical company has been granted a 180-day compliance period to meet this criterion. In response, Relmada has expressed its intent to comply with Nasdaq’s continued listing requirements.
Simultaneously, the company has seen significant internal changes. Paul Kelly was appointed as the new COO, and a pay freeze for top executives has been implemented to reduce expenses. However, the company’s Phase 3 trial for major depressive disorder, REL-1017, was deemed futile by the Data Monitoring Committee, leading to stock rating downgrades by Mizuho (NYSE:MFG) Securities and Leerink Partners.
Despite these challenges, Relmada continues to develop another product, REL-P11, currently in Phase 1 trials. The company reported strong financials with $54 million in cash reserves at the end of the third quarter of 2024, despite a net loss of $21.7 million and rising research and development expenses of $11.1 million. These are some of the recent developments for Relmada Therapeutics.
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