SAN MATEO, Calif. and SINGAPORE - ASLAN Pharmaceuticals (Nasdaq: ASLN), a biopharmaceutical company focusing on immunology, announced it received a delisting determination from Nasdaq due to non-compliance with listing requirements.
The company's securities are set to be delisted after failing to meet the $1.00 minimum bid price and the $2.5 million stockholders' equity threshold as required by Nasdaq's Listing Rules 5550(a)(2) and 5550(b)(1), respectively.
The notification, received on July 9, 2024, follows an earlier warning on January 5, 2024, when ASLAN's American Depositary Shares (ADSs) were reported to have closed below the $1.00 minimum for 30 consecutive business days.
The company was given a 180-day period until July 3, 2024, to regain compliance. In response, ASLAN adjusted the ratio of its ordinary shares, which temporarily lifted the closing price above $1.00 per ADS for five consecutive business days, but this was not sufficient to maintain compliance for the required period of 10 to 20 business days.
ASLAN's board of directors has chosen not to appeal the Staff's decision to the Nasdaq Hearings Panel. This decision comes despite the company's efforts to address the stockholders' equity deficiency, for which it had submitted a compliance plan that was under review.
ASLAN Pharmaceuticals is known for developing eblasakimab, an antibody targeting the IL-13 receptor for atopic dermatitis, and farudodstat, a treatment for alopecia areata. The company operates with teams based in both California and Singapore.
The delisting from Nasdaq represents a significant regulatory hurdle for ASLAN, potentially affecting its financing and strategic plans. The company has not announced any immediate plans following the delisting determination.
This news is based on a press release statement and does not imply an endorsement of ASLAN's claims or future prospects. The company's forward-looking statements in the release are subject to various risks and uncertainties that could cause actual results to differ materially.
In other recent news, ASLAN Pharmaceuticals has been actively expanding its research on the treatment of atopic dermatitis. The clinical-stage biopharmaceutical company recently announced a collaboration with Zenyaku Kogyo Co., Ltd. to investigate the mechanism of action of eblasakimab compared to other biologic therapies for the disease.
This research aims to understand why some patients respond better to eblasakimab than to other treatments like dupilumab and lebrikizumab. The partnership is an extension of an existing commercial agreement between the two companies.
ASLAN Pharmaceuticals also presented a study on eblasakimab at the American Thoracic Society International Conference. The study focused on the drug's ability to alleviate bronchial airway constriction in patients with Chronic Obstructive Pulmonary Disease (COPD). The company has previously reported positive interim results from a Phase 2 study of eblasakimab in adults with moderate-to-severe atopic dermatitis.
Despite these promising developments, ASLAN Pharmaceuticals has been notified of a non-compliance issue with Nasdaq's continued listing requirements due to a stockholders' equity deficit. The company has been given a deadline to submit a plan to address the deficit and regain compliance. These are among the recent developments in the company's ongoing efforts to develop innovative treatments for allergic diseases.
InvestingPro Insights
Amid the delisting news, ASLAN Pharmaceuticals (Nasdaq: ASLN) faces a challenging financial landscape. According to InvestingPro data, the company has a market capitalization of $7.21 million USD, reflecting the market's current valuation of the company.
Further highlighting the company's financial struggles, ASLAN's operating income margin for the last twelve months as of Q1 2024 stands at a staggering -291.03%, indicating significant operational losses relative to its revenue, which was reported at $12 million USD for the same period.
Investors considering ASLAN's stock should note the company's performance over recent periods. The 1-week price total return as of a recent 2024 date showed a surge of 22.6%, suggesting some short-term positive momentum. Still, the longer-term outlook appears less optimistic, with a -88.66% 1-year price total return, indicating a sharp decline in the stock's value over the past year.
Two key InvestingPro Tips for ASLAN Pharmaceuticals may serve as valuable considerations for investors. Analysts do not anticipate the company will be profitable this year, which aligns with the observed negative earnings per share figures. Moreover, the company's stock has fared poorly over the last month, with a price total return of -22.26%, underscoring the volatility and downward pressure on the stock price.
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