ALX Oncology faces Nasdaq delisting over price rule

Published 25/04/2025, 21:14
ALX Oncology faces Nasdaq delisting over price rule

ALX Oncology Holdings Inc., a pharmaceutical company based in South San Francisco, California, has been notified of its non-compliance with a Nasdaq listing requirement. On April 23, 2025, the company received a notice from Nasdaq’s Listing Qualifications Staff indicating that its common stock had not met the minimum bid price of $1.00 per share for 30 consecutive business days. The stock currently trades at $0.54, following a dramatic 96% decline over the past year. According to InvestingPro analysis, the company’s market capitalization has shrunk to just $28.83 million.

The current situation does not immediately affect the listing of ALX Oncology’s stock on the Nasdaq Global Select Market, provided the company continues to meet other listing criteria. Nasdaq has granted ALX Oncology a 180-day period, ending on October 20, 2025, to regain compliance. To comply, the company’s stock must close at $1.00 per share or higher for at least ten consecutive business days within this timeframe. InvestingPro data reveals the company maintains a strong current ratio of 7.26, with more cash than debt on its balance sheet, though it’s currently burning through cash rapidly.

If ALX Oncology fails to meet the requirement during the initial 180-day period, it may be eligible for a second 180-day period by transferring to the Nasdaq Capital Market, assuming it meets the market’s other initial listing standards. However, if the company is unable to regain compliance within the granted periods, its stock is subject to delisting.

ALX Oncology has expressed its intent to monitor its stock’s closing bid price closely and to consider measures such as a reverse stock split to regain compliance. Despite these efforts, there is no guarantee that the company will achieve or maintain the minimum bid price or meet other Nasdaq listing requirements. This development is based on the company’s latest SEC filing.

In other recent news, ALX Oncology Holdings Inc. reported encouraging results from a Phase 1/2 trial of its drug candidate, evorpacept, in combination with rituximab and lenalidomide for B-cell non-Hodgkin lymphoma. The trial showed a complete response rate of 83%, significantly higher than the historical rate of 34% with the standard treatment. However, in a separate development, the company announced that its Phase 2 trials of evorpacept combined with Merck (NSE:PROR)’s KEYTRUDA® for head and neck squamous cell carcinoma did not meet their primary endpoints, leading to the discontinuation of this combination for that indication. Despite this setback, ALX Oncology remains focused on exploring evorpacept’s potential in other cancer treatments.

Additionally, the company received FDA clearance for an Investigational New Drug application for ALX2004, a novel antibody-drug conjugate targeting solid tumors with EGFR expression, with Phase 1 trials set to begin in mid-2025. Analyst opinions on ALX Oncology have been mixed, with Stifel maintaining a Hold rating while reducing the price target to $1.50, citing regulatory risks and developmental strategy concerns. Conversely, Jefferies upgraded the stock to Buy, raising the price target to $3.00, based on a favorable risk/reward balance and potential upcoming catalysts in clinical trials. These developments reflect the ongoing challenges and opportunities for ALX Oncology in advancing its cancer treatment pipeline.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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