DARA BioSciences (NASDAQ:DARA) has made strides repositioning itself as provider of cancer care products but the company is now in danger of losing its stock listing because its stock price is too low.
The Raleigh company disclosed in a securities filing that the Nasdaq sent a letter on May 13, warning that DARA’s stock has closed below the minimum $1 per share price for the last 30 days. DARA now has until Nov. 11 of this year to boost its stock above the $1 threshold and meet listing requirements.
DARA stock closed on Thursday at 74 cents per share and was trading this morning at around 70 cents per share. In the last year, the stock has traded between 62 cents and $1.38 per share.
If DARA stock price is above the $1 mark on Nov. 11, the company will get an additional 180 days to demonstrate that it is compliant with listing requirements. If not, DARA could face delisting.
“The company is currently evaluating its alternatives to resolve this listing deficiency,” DARA said in the securities filing.
DARA started out developing drugs to treat metabolic diseases, such as diabetes, and central nervous system disorders. While DARA is still pursuing therapies in those areas, over the last two years the company has made a big push into oncology, mainly through acquisitions. The company’s first commercialized product Soltamox, a liquid version of cancer drug Tamoxifen, launched last October. That product came to DARA in the company’s acquisition last year South Carolina company Oncogenerix. Other cancer products, including Gelclair, a oral gel to treat pain and inflammation that can result from radiation therapy and chemotherapy, came to DARA via acquisition.
For the first quarter of 2013, DARA reported a $2.6 million loss on revenue of just $21,180. The company expects that Gelclair will help boost the company’s sales. Gelclair was launched commercially last month.
