CUPERTINO, CA - DURECT Corporation, a biopharmaceutical company with a market capitalization of $24.21 million, has been notified by the Nasdaq Stock Market of non-compliance with its minimum bid price rule, the company disclosed in a regulatory filing today. The Nasdaq’s Listing Qualifications Department issued the notice after DURECT’s common stock, currently trading at $0.77, closed below the $1.00 minimum bid price for 30 consecutive trading days.
The rule in question, Nasdaq Marketplace Listing Rule 5550(a)(2), requires listed securities to maintain a bid price of at least $1.00. DURECT, which trades under the ticker NASDAQ:DRRX, now has 180 calendar days, until July 8, 2025, to regain compliance.
Compliance can be achieved if the stock’s closing bid price reaches $1.00 or higher for at least 10 consecutive trading days during this period. The stock has traded between $0.55 and $1.88 over the past 52 weeks, according to InvestingPro data.
Should DURECT fail to meet the requirement by July 8, it may be eligible for an additional 180-day grace period, contingent upon meeting all other Nasdaq Capital Market initial listing standards and providing a notice of intent to cure the deficiency to Nasdaq.
DURECT has stated its intention to actively monitor its stock price and evaluate all available options to address the issue and regain compliance. However, if the company does not achieve compliance within the given timeframe, including any extension granted, it faces the risk of delisting. The company would have the right to appeal any delisting decision to a Nasdaq hearings panel.
InvestingPro analysis indicates concerning financial metrics, including a current ratio of 0.71 and short-term obligations exceeding liquid assets. Want deeper insights? InvestingPro subscribers have access to over 10 additional key metrics and ProTips about DURECT’s financial health, along with comprehensive research reports available for 1,400+ US stocks.
This development is a crucial reminder for investors about the regulatory challenges public companies can face, including maintaining compliance with stock exchange requirements. The information is based on a press release statement from DURECT Corporation.
In other recent news, DURECT Corporation has announced its third-quarter financial results for 2024. The company reported a slight increase in total revenues, which rose to $1.9 million from $1.7 million during the same period last year. This growth is primarily attributed to an increase in product sales. DURECT’s quarterly financials also highlighted a significant decrease in research and development expenses, falling to $2.2 million from $7.2 million year-over-year, mainly due to reduced clinical trial-related costs and lower employee expenses.
The company’s selling, general, and administrative expenses also saw a decline to $3.2 million from $3.8 million last year, reflecting lower employee, professional services, and legal costs. DURECT has reported a total of $10.5 million in cash and investments as of September 30, 2024, with a cash utilization of $5.3 million for the quarter. The company believes it has sufficient funds to maintain operations through the first quarter of 2025.
In other developments, DURECT announced that Innocoll is terminating the licensing agreement for POSIMIR, which is not expected to significantly impact the company’s financials as royalties had not been received in recent quarters. The company is also focusing on the initiation of the confirmatory Phase 3 clinical trial of larsucosterol for alcohol-associated hepatitis.
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