Published: Saturday, May 10, 2008
Sonus Pharmaceuticals says it will appeal Nasdaq delisting
The struggling Bothell biotech's shares continue to lag, and it faces removal by the exchange
BOTHELL -- Sonus Pharmaceuticals' stock could be removed from trading on the Nasdaq market in the near future, although the biotechnology company plans to appeal the action.
Sonus has struggled since its lead chemotherapy treatment, which was nearing the final stages of clinical testing, failed to show significant results in cancer patients.
The company announced an end to pursuing regulatory approval for the drug candidate. A lucrative drug development partnership with Bayer Schering fell apart as a result.
In the aftermath, Sonus' shares have plummeted 93 percent, from $4.35 on the day before the drug failure announcement to 32 cents as of Friday.
Actually, in response to the possible removal of Sonus' stock from the Nasdaq market, shares fell by a nickel, or 13 percent, on Friday.
Nasdaq officials received notice last November that the company's shares had to begin trading above $1 by this month in order to avoid elimination from the market. Instead of rebounding, however, the share price hasn't risen above 50 cents since late last year.
Sonus management said in a statement Friday that it "intends to request a hearing to appeal Nasdaq's determination." During the appeals process, Sonus' stock will stay on the Nasdaq market.
Sonus, which has not yet released its first-quarter results, recently trimmed its staff to two dozen people and shut down research work to slow spending. With $29 million in the bank at the end of February, the company's chief financial officer, Alan Fuhrman, has estimated Sonus can keep operating until late 2009.
That gives the company time to move its remaining drug candidate through tests of its effectiveness against colorectal, lung and ovarian cancers. Fuhrman and Michael Martino, chief executive at Sonus, have added they are looking at buying other drug candidates as well.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
Sonus has struggled since its lead chemotherapy treatment, which was nearing the final stages of clinical testing, failed to show significant results in cancer patients.
The company announced an end to pursuing regulatory approval for the drug candidate. A lucrative drug development partnership with Bayer Schering fell apart as a result.
In the aftermath, Sonus' shares have plummeted 93 percent, from $4.35 on the day before the drug failure announcement to 32 cents as of Friday.
Actually, in response to the possible removal of Sonus' stock from the Nasdaq market, shares fell by a nickel, or 13 percent, on Friday.
Nasdaq officials received notice last November that the company's shares had to begin trading above $1 by this month in order to avoid elimination from the market. Instead of rebounding, however, the share price hasn't risen above 50 cents since late last year.
Sonus management said in a statement Friday that it "intends to request a hearing to appeal Nasdaq's determination." During the appeals process, Sonus' stock will stay on the Nasdaq market.
Sonus, which has not yet released its first-quarter results, recently trimmed its staff to two dozen people and shut down research work to slow spending. With $29 million in the bank at the end of February, the company's chief financial officer, Alan Fuhrman, has estimated Sonus can keep operating until late 2009.
That gives the company time to move its remaining drug candidate through tests of its effectiveness against colorectal, lung and ovarian cancers. Fuhrman and Michael Martino, chief executive at Sonus, have added they are looking at buying other drug candidates as well.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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