Assertio Holdings faces Nasdaq delisting over share price rule

Published 29/01/2025, 10:30
Assertio Holdings faces Nasdaq delisting over share price rule

Assertio Holdings, Inc. (NASDAQ:ASRT), a pharmaceutical company currently trading at $0.81 per share, is confronting potential delisting from the Nasdaq Capital Market due to non-compliance with the minimum bid price requirement. The stock has experienced significant pressure, falling 46% over the past six months according to InvestingPro data.

The company disclosed in a recent SEC filing that its common stock had closed below the mandatory $1.00 per share threshold for 32 consecutive business days, violating Nasdaq’s Listing Rule 5550(a)(2).

The notification from Nasdaq, received on Tuesday, January 22, 2025, does not immediately affect the company’s listing status. Assertio has been granted a 180-day grace period, until July 21, 2025, to regain compliance with the bid price rule. To achieve this, the company’s stock must maintain a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days before the compliance deadline.

Assertio has stated its intent to proactively monitor its stock’s closing bid price and explore available options to address the issue. Despite this, the company has cautioned that there is no guarantee of regaining compliance within the Nasdaq’s stipulated timeframe.

If Assertio fails to meet the requirement by the Compliance Date, it may be eligible for an additional grace period of 180 days to fulfill Nasdaq’s conditions. The situation underscores the challenges faced by some pharmaceutical companies in maintaining their stock market listings amidst market volatility and industry pressures.

This news is based on an official statement from an SEC filing by Assertio Holdings, Inc. For deeper insights into Assertio’s valuation metrics, financial health indicators, and comprehensive analysis, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, Assertio Holdings has seen positive developments in its operations. The company reported its third-quarter financial results for 2024, showing revenues of $29.2 million and a net loss of $0.03 per share, surpassing analysts’ projections. Assertio’s gross margins also improved to 74% in the third quarter.

Assertio also announced the appointment of Mark Reisenauer as an independent director to its Board of Directors. Mr. Reisenauer brings over three decades of experience in the pharmaceutical industry, with a focus on oncology and hematology. His appointment comes as Assertio maintains a strong current ratio of 2.01 and holds more cash than debt on its balance sheet.

In the realm of clinical trials, Assertio reported encouraging results from its Rolvedon clinical trial for early-stage breast cancer. The trial, conducted across 13 U.S. sites, demonstrated a neutrophil count recovery time of 1.8 days and a febrile neutropenia rate of 2%.

Analysts from H.C. Wainwright have maintained a Buy rating for Assertio, emphasizing the convenience and dosing flexibility of Rolvedon. They have set a 12-month price target of $4.00 for Assertio’s shares, suggesting significant potential upside.

In related news, Beam Therapeutics announced the appointment of Sravan K. Emany as Chief Financial Officer. Emany brings extensive experience from his tenure at Ironwood Pharmaceuticals (NASDAQ:IRWD), expected to contribute significantly to Beam’s capital formation and allocation strategy.

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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