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Friday's Biggest Mover: PhaseRX Diagnosis Dismal, Here's What Drove Shares Down

Friday's Biggest Mover: PhaseRX Diagnosis Dismal, Here's What Drove Shares Down
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PhaseRx Inc (NASDAQ: PZRX), shares of which have mostly been in penny stock territory since late June this year, is a biopharma company developing a portfolio of mRNA products to treat inherited and life-threatening liver diseases in children.

PhaseRx stock was almost cut in half on Friday following an announcement from the company regarding the receipt of a delisting notice from the Nasdaq.

At time of writing, shares of PhaseRx were slumping 34.01 percent to $0.640, on roughly two times their average volume.

The communication from the Nasdaq said, unless an appeal is made, PhaseRx stock will be suspended from trading on the exchange at the opening of business on Nov. 1.

On Aug. 22, the company received notification from the Listing Qualification Department of the Nasdaq Stock Market, which said the company did not comply with the minimum stockholders' equity under Nasdaq Listing Rule 5550(b)(1) for continued listing.

In reply, the company submitted a plan of compliance on Sept. 21, which assured compliance with the continued listing standards by the end of the third quarter of 2017.

The plan was further supplemented on Oct. 10 and Oct. 18, the company's release said.

However, with the Nasdaq rejecting the plan and embarking on delisting procedures, the company said it will appeal to a Nasdaq Hearing Panel.

Earlier this month, the company announced the elimination of half of its workforce and delay the development of its lead candidate, all in a bid to cut costs. The company also said it is exploring strategic alternatives, including a possible takeover. The announcement triggered some positive sentiment toward the stock, although things have soured now, with the delisting overhang.

Related Link: Celgene May Have Lost Positive Sentiment, But Its Growth Thesis Hasn't Gone Anywhere

Posted-In: Biotech News Movers Trading Ideas General Best of Benzinga


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