WORCESTER, Mass. - Mustang Bio , Inc. (NASDAQ:MBIO), a biopharmaceutical company engaged in the development of cell therapies for cancer, has been granted an extension by the Nasdaq Hearings Panel to meet the exchange's continued listing requirements. The company now has until January 31, 2025, to demonstrate compliance with Nasdaq's minimum bid price requirement and until February 18, 2025, to meet the stockholders' equity requirement.
The decision, dated November 8, 2024, allows Mustang Bio additional time to work on meeting the criteria necessary for maintaining its listing on The Nasdaq Capital Market. While the company explores options to comply with the listing standards, there is no certainty that it will achieve this goal.
Mustang Bio, founded by Fortress Biotech, Inc. (NASDAQ:FBIO), focuses on acquiring and licensing technologies to fund research and development in the field of cell therapies, particularly CAR-T therapies. These efforts are in collaboration with top medical institutions to potentially deliver cures for challenging cancers.
The company's common stock is registered under the Securities Exchange Act of 1934, as amended, and it regularly files periodic reports with the U.S. Securities and Exchange Commission (SEC). Despite the recent extension, Mustang Bio faces the ongoing challenge of securing substantial additional funds and navigating the complexities of clinical trial development, regulatory filings, and approvals for its product candidates.
The information in this article is based on a press release statement from Mustang Bio, Inc. It is important to note that the company's forward-looking statements are subject to various risks and uncertainties, and actual results could differ materially from those projected. The company does not undertake any obligation to update these forward-looking statements, except as required by law.
In other recent news, Mustang Bio has gained FDA Orphan Drug Status for its glioma treatment, MB-108. Concurrently, the company is advancing its MB-101, another potential treatment for malignant gliomas. Clinical trials for both treatments are ongoing at City of Hope and The University of Alabama, respectively.
In related news, Fortress Biotech, Mustang Bio's parent company, has secured FDA approval for its rosacea treatment, Emrosi™. Developed in partnership with Dr. Reddy’s Laboratories, Emrosi™ demonstrated effectiveness in two Phase 3 clinical trials and is expected to be available in the U.S. market by late first quarter or early second quarter of 2025.
On the financial front, Fortress Biotech has secured approximately $8 million from stock sales and private placements and entered into a $50 million loan agreement with Oaktree Capital Management. The company reported a second-quarter revenue of $14.9 million. Mustang Bio, on the other hand, secured around $4 million from warrant exercises and announced a stock offering and private placement expected to yield approximately $2.5 million.
Analysts from Roth/MKM have responded to these developments by raising Fortress Biotech's price target from $10.00 to $13.00, maintaining a Buy rating. These are recent developments for Fortress Biotech and Mustang Bio.
InvestingPro Insights
As Mustang Bio (NASDAQ:MBIO) works to meet Nasdaq's listing requirements, it's worth examining the financial health of its parent company, Fortress Biotech, Inc. (NASDAQ:FBIO). According to InvestingPro data, Fortress Biotech has a market capitalization of $48.51 million, reflecting its small-cap status in the biotech sector.
The company's revenue for the last twelve months as of Q2 2023 stood at $82.62 million, with a notable revenue growth of 31.68% over the same period. However, this growth comes with significant challenges. An InvestingPro Tip indicates that Fortress Biotech is "quickly burning through cash," which is a common concern for biotech companies heavily invested in research and development.
Another InvestingPro Tip highlights that the company "suffers from weak gross profit margins." This is evident in the negative gross profit of -$15.1 million and a gross profit margin of -18.27% for the last twelve months as of Q2 2023. These figures underscore the financial hurdles Fortress Biotech faces as it supports subsidiaries like Mustang Bio in their pursuit of innovative cell therapies.
Investors considering Fortress Biotech should be aware that analysts do not anticipate the company to be profitable this year, according to another InvestingPro Tip. This aligns with the company's current financial metrics, including a negative operating income of -$95.07 million for the last twelve months as of Q2 2023.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and insights that could be valuable in assessing Fortress Biotech's financial position and future prospects. In fact, there are 8 more InvestingPro Tips available for FBIO, providing a deeper understanding of the company's financial health and market position.
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