OptiNose , Inc., a pharmaceutical company, has received notice from Nasdaq that its stock price has not met the minimum bid requirement for continued listing on the Nasdaq Global Market. The company's common stock, traded under the ticker NASDAQ:OPTN, closed below the $1.00 per share threshold for 30 consecutive business days, triggering a warning from the exchange.
The notice, dated today, does not immediately affect the trading of OptiNose's shares, which continue to be listed. However, the company must boost its share price to at least $1.00 for ten consecutive business days by April 14, 2025, to regain compliance with Nasdaq's rules. If OptiNose fails to meet this requirement within the 180-day period, it may be granted a second 180-day period to comply.
Should OptiNose not achieve compliance within these periods, its stock could be delisted from Nasdaq. The company could appeal any delisting decision to a Nasdaq hearing panel. OptiNose has stated it will actively monitor its share price and consider options to address the issue, including potentially seeking shareholder approval for a reverse stock split.
The company's forward-looking statements indicate plans to regain compliance, but they caution that there's no guarantee of success. These statements include potential risks such as not meeting the minimum bid requirement, failing to meet other Nasdaq listing requirements, and the possibility that shareholders might not approve a proposed reverse stock split.
In other recent news, Optinose (NASDAQ:OPTN), a pharmaceutical company, has made significant strides in its financial performance. The company reported a 5% increase in Q2 2024 XHANCE net revenue, reaching $20.5 million. In addition, Optinose revised its full-year 2024 guidance for XHANCE net revenue to a range of $85 million to $90 million, indicating a growth of 20% to 27% from the previous year. These developments are largely attributed to the successful launch of their chronic sinusitis treatment, XHANCE.
In terms of leadership changes, Optinose has announced the appointment of Terry Kohler as its new Chief Financial Officer and the resignation of board member Ms. Catherine Owen. Kohler, with over two decades of experience in biotech finance, is expected to guide Optinose's financial strategy, especially as the company seeks to expand the use of XHANCE.
Lastly, Optinose projects positive income from operations by 2025 and is optimistic about achieving peak year sales of $300 million. Analysts from Lake Street Capital Markets and Jonathan Neely have noted the company's conservative approach to its average net revenue per prescription projection.
InvestingPro Insights
Recent InvestingPro data sheds light on OptiNose's financial situation, providing context to the company's Nasdaq listing challenges. As of the last twelve months ending Q2 2024, OptiNose reported revenue of $75.06 million, with a modest growth of 3.91%. Despite this growth, the company's operating income remains negative at -$18.83 million, indicating ongoing profitability challenges.
InvestingPro Tips highlight that OptiNose has been "quickly burning through cash" and is "not profitable over the last twelve months." These factors likely contribute to the stock's recent performance, with the price falling significantly over the last three months. The current market cap stands at $113.99 million, reflecting investor sentiment amidst these financial headwinds.
On a positive note, OptiNose maintains "impressive gross profit margins," with a gross profit margin of 89.92% for the same period. This suggests that while the company faces challenges, it has a strong foundation in terms of product pricing and cost management.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide valuable insights into OptiNose's financial health and market position. These additional tips could be particularly useful in understanding the company's potential for addressing its Nasdaq listing concerns.
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