Theriva Biologics announces reverse stock split

ROCKVILLE, Md. - Theriva Biologics, Inc. (NYSE American: TOVX), a clinical-stage biopharmaceutical company, has announced a reverse stock split of its common stock at a 1-for-25 ratio, set to take effect at the start of trading on August 26, 2024. The decision, authorized by the Board of Directors on August 15 without shareholder approval, aims to meet the NYSE American's per-share price requirements.

The reverse stock split will reduce the number of outstanding common shares from approximately 25.1 million to around 1 million. Shareholders will not receive fractional shares; instead, holdings not divisible by 25 will be rounded up to the next whole share. The company's common stock will continue trading under the ticker "TOVX" with a new CUSIP number.

Theriva Biologics focuses on developing treatments for cancer and related diseases with high unmet medical needs. Their portfolio includes an oncolytic adenovirus platform, a beta-lactam antibiotic-degrading enzyme to protect the microbiome, and a recombinant enzyme to treat gastrointestinal and systemic diseases.

The transfer agent, Equiniti Trust Company, will provide stockholders with instructions regarding the exchange of old stock certificates. Those with shares in brokerage accounts need not take any action to exchange their shares. This move is part of the company's efforts to maintain compliance with exchange listing standards and is based on a press release statement from Theriva Biologics.

In other recent news, Theriva Biologics has been granted Rare Pediatric Drug Designation (RPDD) by the U.S. Food and Drug Administration (FDA) for its leading product candidate, VCN-01. This designation is for the treatment of retinoblastoma, a rare type of eye cancer in children. Theriva's CEO, Steven A. Shallcross, indicated that the company is refining the clinical approach for VCN-01 as a supplementary therapy to chemotherapy for children with advanced stages of the disease.

In addition, the FDA has granted Fast Track Designation (FTD) to Theriva's VCN-01 for the treatment of metastatic pancreatic adenocarcinoma in combination with chemotherapy drugs. The VIRAGE Phase 2b trial, which is investigating the efficacy of VCN-01 as a first-line therapy for patients with pancreatic ductal adenocarcinoma, is expected to complete patient enrollment by the third quarter of 2024.

These are recent developments in the company's ongoing commitment to address unmet medical needs in oncology. The RPDD and FTD designations from the FDA underscore the potential of Theriva's leading product candidate, VCN-01, in treating serious and life-threatening conditions.

InvestingPro Insights

As Theriva Biologics, Inc. (NYSE American: TOVX) navigates through its strategic decision to undergo a reverse stock split, it's essential to consider the company's financial health and market performance. According to InvestingPro data, Theriva Biologics holds a market capitalization of just $3.62 million, reflecting the size and scale of the company within the biopharmaceutical industry. The company's stock has experienced significant volatility, with a one-week price total return of -8.02% and a more pronounced three-month price total return of -46.66%, indicating a challenging period for the stock.

InvestingPro Tips suggest a mixed financial picture for Theriva Biologics. On one hand, the company holds more cash than debt on its balance sheet, which is a positive sign of liquidity (InvestingPro Tip #0). On the other hand, the company is quickly burning through cash (InvestingPro Tip #1), and analysts do not anticipate profitability this year (InvestingPro Tip #5). Furthermore, the company has been suffering from weak gross profit margins (InvestingPro Tip #3), and its net income is expected to drop this year (InvestingPro Tip #4).

Investors considering Theriva Biologics as an investment opportunity should be aware that the stock has fared poorly over the last month (InvestingPro Tip #6) and over longer periods as well, with the price performing poorly over the last decade (InvestingPro Tip #10). This information, coupled with the recent reverse stock split, could be critical for potential investors assessing the company's future prospects.

For those looking for more comprehensive analysis and additional tips, InvestingPro offers a full suite of data and insights, with 14 total InvestingPro Tips available for Theriva Biologics at https://www.investing.com/pro/TOVX. These tips may provide a deeper understanding of the company's financial health and market position.

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