Carisma Therapeutics Inc. (NASDAQ:CARM), a biopharmaceutical company, has been notified by the Nasdaq Stock Market that it no longer meets the minimum market value requirement for continued listing on the exchange. The company received the notice on Thursday, October 10, 2024, after its market value of listed securities (MVLS) fell below the required threshold of $50 million.
The Nasdaq's notice does not immediately affect the listing of Carisma's common stock, which continues to trade on the Nasdaq Global Market under the ticker symbol CARM. The company has been granted a 180-day period, until April 8, 2025, to regain compliance. To do so, Carisma's MVLS must remain at or above $50 million for at least ten consecutive business days within this timeframe.
In the event that Carisma fails to meet the MVLS requirement by the deadline, it may face delisting from the Nasdaq. However, the company would have the opportunity to appeal any delisting decision before a Nasdaq Hearing Panel.
Carisma, headquartered in Philadelphia, PA, specializes in pharmaceutical preparations and is known formerly as Sesen Bio (NASDAQ:CARM), Inc. and Eleven Biotherapeutics, Inc. The company has stated its intention to monitor its market value closely and to explore available options to regain compliance with the Nasdaq's listing rules.
The forward-looking statements included in the company's SEC filing reflect management's expectations but are subject to risks and uncertainties, which means there is no guarantee that Carisma will achieve the necessary MVLS or meet other Nasdaq compliance standards. The company has not committed to any specific course of action to address the deficiency.
This report is based on Carisma Therapeutics Inc.'s recent SEC filing and contains statements that are forward-looking in nature. Investors are cautioned that such statements are not guarantees of future performance and actual results may differ materially.
In other recent news, Carisma Therapeutics Inc. and Moderna (NASDAQ:MRNA), Inc. have expanded their collaboration to develop new treatments for autoimmune diseases. The partnership will now focus on two specific autoimmune disease targets, leveraging Carisma's proprietary CAR-M technology and Moderna's mRNA/LNP platform.
In addition, Carisma's novel cellular therapy, CT-0525, has been granted Fast Track designation by the FDA, potentially expediting its development and review process.
The biopharmaceutical company has also seen changes in its board and advisory team. Carisma has expanded its Scientific Advisory Board with the appointment of liver fibrosis experts, Dr. Scott Friedman and Dr. Ira Tabas.
Furthermore, Marella Thorell and David Scadden, M.D., have been elected as directors following the resignation of board members Regina Hodits, Ph.D., and Björn Odlander, M.D., Ph.D.
Analyst firm H.C. Wainwright has maintained a Buy rating for Carisma, reflecting confidence in CT-0525's development timeline. Similarly, Evercore ISI has maintained an Outperform rating, while BTIG has initiated coverage on Carisma with a Buy rating. These are the recent developments for the company.
InvestingPro Insights
Recent InvestingPro data sheds light on Carisma Therapeutics' financial situation, providing context to the company's Nasdaq listing challenges. As of the last twelve months ending Q2 2024, Carisma's revenue stood at $20.71 million, with a significant revenue growth of 57.95%. However, the company's financial health remains precarious, as evidenced by its negative gross profit of -$51.02 million and an operating income of -$75.97 million for the same period.
InvestingPro Tips reveal that Carisma is "quickly burning through cash" and "suffers from weak gross profit margins," which aligns with the company's struggle to maintain its Nasdaq listing. The tip that Carisma "holds more cash than debt on its balance sheet" suggests some financial flexibility, but this may be offset by its rapid cash burn rate.
The stock's performance has been concerning, with InvestingPro data showing a 6-month price total return of -52.88% and a 1-year return of -77.24%. This decline in stock value directly relates to the company's difficulty in meeting Nasdaq's minimum market value requirement.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Carisma Therapeutics, providing a deeper understanding of the company's financial position and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.