Rallybio faces Nasdaq delisting over share price woes

Published 25/02/2025, 22:44
Updated 25/02/2025, 22:46
Rallybio faces Nasdaq delisting over share price woes

NEW HAVEN, CT – Rallybio Corporation, a biopharmaceutical company currently trading at $0.70 and down over 56% in the past year, received a notice from the Nasdaq Stock Market on Monday, indicating that the company’s stock is at risk of being delisted. The notification was issued because Rallybio’s common stock has not met the minimum required closing bid price of $1.00 per share for 30 consecutive business days, as stipulated by Nasdaq’s continued listing standards. According to InvestingPro data, the stock is trading near its 52-week low of $0.72, far below its high of $3.46.

Despite the warning, Rallybio’s stock will continue to trade on the Nasdaq Global Select Market for the time being. The company has been given 180 days, until August 25, 2025, to address the issue and regain compliance. To do so, Rallybio must maintain a closing bid price of at least $1.00 per share for at least 10 consecutive business days before the compliance deadline. With a market capitalization of just $28.75 million, the company faces significant challenges, though InvestingPro analysis shows it maintains strong liquidity with a current ratio of 9.55.

Rallybio has stated its intention to monitor its stock’s closing bid price closely and is exploring options to resolve the deficiency within the allotted timeframe. If the company fails to meet the minimum bid price requirement by the deadline, it may be eligible for an additional 180-day grace period if it applies to transfer its stock listing to the Nasdaq Capital Market.

In order to qualify for this extension and transfer, Rallybio must meet all other initial listing standards for the Nasdaq Capital Market, except for the bid price requirement, and must also inform Nasdaq of its plan to remedy the bid price shortfall during the second grace period.

Should Rallybio be unable to regain compliance or to transfer its listing, it could face a formal delisting notification from Nasdaq. The company would then have the opportunity to appeal the decision before a Nasdaq Hearings Panel.

This news comes as a challenge for Rallybio, which operates under the pharmaceutical preparations industry classification and is incorporated in Delaware. The company, formerly known as Rallybio Holdings, LLC, is headquartered at 234 Church Street, Suite 1020, New Haven, Connecticut. While the company holds more cash than debt on its balance sheet, InvestingPro analysis indicates it’s quickly burning through cash with negative earnings of $1.57 per share in the last twelve months. Investors seeking deeper insights into Rallybio’s financial health and growth prospects can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The information regarding Rallybio’s notice of potential delisting is based on a recent SEC filing by the company.

In other recent news, Rallybio Corporation has initiated a Phase 2 clinical trial for RLYB212, aimed at preventing fetal and neonatal alloimmune thrombocytopenia (FNAIT). The trial seeks to examine the pharmacokinetics and safety of the treatment in pregnant women at risk for HPA-1a alloimmunization. This development follows the company’s publication of a manuscript in Clinical Pharmacology and Therapeutics: Pharmacometrics & Systems Pharmacology, which outlines the dosing regimen informed by a target-mediated drug disposition model. Meanwhile, Rallybio has also improved the manufacturing process for RLYB116, anticipated to enhance the drug’s tolerability and efficacy. A Phase 1 trial for RLYB116 is expected to begin in the second quarter of 2025, with results anticipated by the end of the year. In light of these updates, H.C. Wainwright has maintained a Buy rating on Rallybio, reflecting confidence in the potential of RLYB116. The firm has set a 12-month price target of $5.00, emphasizing the drug’s potential as a more patient-friendly treatment option. Rallybio continues to focus on developing therapies for severe and rare diseases, with a pipeline that includes other clinical-stage programs and preclinical developments.

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