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Many Life Science/Healthcare Stocks Share Delisting Issues

After months of suspending requirements that stocks stay above $1, NASDAQ is cracking down. On 8/3/09, NASDAQ reinstituted the rule, saying stocks that don't trade above $1 for 30 consecutive days will begin the delisting process.

Stocks (51) potentially in danger of being delisted:  EnteroMedics (ETRM), Catalyst Pharmaceutical Partners (NASDAQ:CPRX), United American Healthcare (OTCPK:UAHC), Nucryst Pharmaceuticals  (NCST), ICAgen (NASDAQ:ICGN), Bioanalytical Systems (NASDAQ:BASI), Neurobiological Technologies (OTCPK:NTII), Star Scientific (STSI), Ocean Bio-Chem (NASDAQ:OBCI), Cyclacel Pharmaceuticals (NASDAQ:CYCC), EpiCept Corporation (OTC:EPCT), AP Pharma (APPA), Orthologic (NASDAQ:CAPS), Nyer Medical Group (NYER), Telik (OTCQB:TELK), GenVec (NASDAQ:GNVC), Repros Therapeutics (NASDAQ:RPRX), GeoPharma (NASDAQ:GORX), XOMA (NASDAQ:XOMA), Insmed  (NASDAQ:INSM), Dynatronics (NASDAQ:DYNT), Marshall Edwards (MSHL), Aastrom BioSciences (ASTM), Advanta Corp (ADVNB), Altus Pharmaceuticals (NYSEMKT:ALTV), Amarin (AMRM), Bionova (OTC:BNVI), Cardica (CRDC), Cell Genesys (CEGE), Commonwealth Biotechnologies (CBTE), Convera (CNVA), Dara Biosciences (DARA), DeCode Genetics (DCGN), Endologix (NASDAQ:ELGX), Forbes Med-Tech (FMTI), Generex (OTCQB:GNBT), Genetics Technology (NASDAQ:GENE), GTC Biotherapeutics (GTCB),  Hollis-Eden Pharmaceuticals (HEPH), Hythium (NASDAQ:HYTM), Metabasis Therapeutics (NASDAQ:MBRX), Neurogen (NRGN), NexMed (NEXM), Ore Pharmaceuticals (OTCPK:ORXE), Peregrine Pharma (PPHM), Progen Pharmaceuticals (PGLA), Targeted Genetics (NASDAQ:TGEN), Thermogenisis (NASDAQ:KOOL), Urologix (VLGX), Vasogen (VSGN) and Via Pharmaceuticals (OTCPK:VIAP). (Source: NASDAQ)

Bottom line: There are other problems than just sustainability and viability facing small-cap healthcare stocks struggling to stay above $1: having their listing dropped. The market is coming back very slowly but NASDAQ has determined that it was “time” to restart the rule with notification warnings to companies to get their stock prices up or face being kicked off. While the $1 trigger might sound scary, it's not an immediate danger because the: rules give companies some wiggle room as it takes about six months in most cases. But, it is problem for investors who need to validate their investment.

  • Understand, listed companies that have received a delisting determination letter from NASDAQ may appeal that determination by requesting a hearing. A company that has been denied initial listing may also appeal the denial by requesting a hearing,
  • When NASDAQ determines to delist a company due to its failure to meet continued listing standards, NASDAQ will send a delisting determination letter which will include the basis for the delisting,
  • The company then has 7 calendar days from the date of the determination letter to request a hearing. A request for a hearing will stay the delisting pending a decision by the Hearing Panel.