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Avenue Therapeutics, Inc. (NASDAQ:ATXI), a pharmaceutical company currently trading at $0.98 and down 50% year-to-date, has been granted an extension by the Nasdaq Hearings Panel to continue listing on the Nasdaq Capital Market, the company announced on Thursday. According to InvestingPro data, the stock is trading near its 52-week low of $0.93, significantly below its 52-week high of $15.00. The extension, subject to certain conditions, comes as a relief to the company which had previously received a delisting notice for failing to meet the minimum stockholders’ equity requirement.
The Panel’s decision requires Avenue to publicly disclose any equity-increasing transactions by March 14, 2025, and to provide an update on fundraising plans and income projections. Additionally, by April 15, 2025, Avenue must report the results of a clinical trial for its AJ201 program, which is currently assessing the treatment for spinal bulbar and muscular atrophy.
Amid these developments, Avenue is embroiled in a licensing dispute with AnnJi Pharmaceutical (TADAWUL:2070) Co. Ltd. over the AJ201 product candidate. AnnJi has signaled its intention to terminate the license agreement, citing alleged material breaches by Avenue, including a failure to develop and commercialize AJ201. Avenue has contested the grounds for termination, maintaining that the agreement remains valid and binding, and has sought emergency measures to prevent AnnJi from using an assay that could potentially deplete irreplaceable clinical samples.
The ongoing dispute with AnnJi adds to the challenges faced by Avenue, which has not yet commercialized any drug products and continues to incur losses. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 2.7, though its overall financial health score remains weak at 1.58. With a market capitalization of just $1.87 million, the company’s unique -0.29 beta indicates its stock often moves contrary to broader market trends. The company is exploring options to regain compliance with Nasdaq’s requirements and is considering all available avenues to address the issues raised by AnnJi. The outcome of these matters could significantly impact Avenue’s future operations and financial position.
Investors are advised that this information is based on Avenue Therapeutics’ recent SEC filings, and the company’s future actions and strategies will be guided by the resolution of the current challenges. InvestingPro subscribers have access to 13 additional investment tips and comprehensive financial metrics to better assess the company’s prospects. The platform’s analysis suggests the stock is currently trading slightly below its Fair Value.
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