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NEWTOWN, Pa. - Traws Pharma, Inc. (NASDAQ:TRAW), a biopharmaceutical company working on treatments for respiratory viral diseases, has regained compliance with the Nasdaq’s stockholders’ equity requirement, ensuring its continued listing on the NASDAQ Capital Market. The company, currently valued at $12.3 million, has seen its stock decline significantly, trading near its 52-week low of $3.31 and down over 83% in the past year. This development follows a recent equity financing round and the achievement of key corporate milestones, including progress in the company’s antiviral drug development programs.
On February 25, 2025, Traws received a decision letter from the Nasdaq Hearings Panel confirming that it meets the minimum stockholders’ equity requirement of $2.5 million as set by Nasdaq Listing Rule 5550(b)(1). This confirmation comes after the company successfully closed a financing round on December 30, 2024, which raised $20 million in gross proceeds. According to InvestingPro data, while Traws maintains more cash than debt on its balance sheet, the company is quickly burning through its cash reserves. Subscribers to InvestingPro can access 15 additional key insights about Traws’s financial health and market position.
The company’s CEO, Werner Cautreels, Ph.D., expressed gratitude for the Nasdaq Hearings Panel’s recognition of Traws’s recent advancements. Cautreels highlighted the strategic steps taken by Traws, including its focus on developing novel antivirals for bird flu and influenza. The company’s lead program for bird flu/influenza recently completed a Phase 1 trial, with ongoing laboratory studies. While currently unprofitable, analysts tracked by InvestingPro expect the company to achieve profitability this year, with a consensus target price of $6 per share.
Despite this positive step, Traws will be under mandatory panel monitoring until February 25, 2026. If the company fails to maintain the required stockholders’ equity during this period, it risks delisting without a cure period, although it would have the opportunity to request a new hearing. The company’s current market position shows signs of weakness, with InvestingPro’s Financial Health Score indicating challenges ahead.
Traws Pharma is developing oral small molecule therapies, including two Phase 1 drug candidates: tivoxavir marboxil for bird/pandemic flu and seasonal flu, and ratutrelvir as a potential COVID-19 treatment. The company emphasizes its commitment to addressing unmet medical needs and improving patient outcomes in the realm of viral infections. Based on InvestingPro’s Fair Value analysis, the stock currently appears to be trading near its fair value, with the next earnings report scheduled for March 14, 2025.
The information in this article is based on a press release statement. Forward-looking statements in the release reflect the company’s current expectations, subject to known and unknown risks and uncertainties, which may cause actual results to differ materially.
In other recent news, Traws Pharma, Inc. has secured financing agreements amounting to $72.6 million to bolster its drug development initiatives, with an initial $20 million available upon closing. This funding, supported by institutional investors such as Perceptive Advisors and OrbiMed, is expected to extend the company’s financial stability into the first half of 2026. Additionally, Traws Pharma has completed Phase 1 dosing of its investigational drug, tivoxavir marboxil, for H5N1 bird flu, demonstrating safety and prolonged drug efficacy in healthy volunteers. The company plans to proceed with a Phase 2 study in 2025 to further explore its influenza program.
In another development, Traws Pharma has amended the terms of its Series A Warrants, affecting the control change threshold and volatility rate, as detailed in a recent SEC filing. The amendments could influence the warrants’ value and appeal to investors. The company also received stockholder approval for the issuance of a significant number of shares upon warrant exercise, aligning with Nasdaq Listing Rules. Furthermore, Traws Pharma announced the resignation of board member Luba Greenwood, noting her decision was voluntary and unrelated to any company disagreements. These developments reflect Traws Pharma’s ongoing strategic and operational adjustments.
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