CHESTERBROOK, Pa. - Trevena, Inc. (NASDAQ:TRVN), a biopharmaceutical company specializing in central nervous system (CNS) disorder treatments, will be delisted from The Nasdaq Stock Market. The decision comes after the company did not meet the minimum stockholder's equity requirement. The Nasdaq Hearings Panel has set the suspension of trading in Trevena's common stock to commence with the opening of business on October 8, 2024.
The company was previously given a deadline of October 2, 2024, to regain compliance with the Equity Standard Rule. Following the delisting, Trevena expects its common stock will begin trading on the Pink Open Market, operated by the OTC Markets Group Inc. However, there is no guarantee that trading on this over-the-counter market will continue, as it is uncertain if brokers will maintain a market for the company's stock.
Trevena is known for its work in developing novel medicines for CNS disorders, including one approved product in the United States, OLINVYK® (oliceridine) injection, for the management of acute pain in adults. The company's pipeline features several investigational drug candidates, such as TRV045 for diabetic neuropathic pain and epilepsy, TRV250 for the acute treatment of migraines, and TRV734 for maintenance treatment of opioid use disorder.
This news is based on a press release statement and reflects the current situation regarding Trevena's compliance with Nasdaq's listing requirements. The implications of the delisting on the company's market presence and investor relations are yet to be fully determined.
In other recent news, Trevena Inc . has regained compliance with Nasdaq's Minimum Bid Price Requirement, as confirmed by Nasdaq's Office of General Counsel. The company is now focusing on meeting the Nasdaq Equity Standard Requirement, having been granted an extension until early October to demonstrate a minimum stockholders' equity of $2.5 million. In an effort to meet this requirement, Trevena has announced a 1-for-25 reverse stock split.
Recent developments also include promising results from preclinical pain and epilepsy studies for Trevena's investigational drug, TRV045. However, analyst firms H.C. Wainwright and JMP Securities have adjusted their stock price targets for Trevena due to uncertainties surrounding this drug. H.C. Wainwright reduced its price target from $9.00 to $5.00, while JMP Securities reduced its target from $4.00 to $3.00.
Lastly, Trevena has reported ending the fourth quarter of 2023 with approximately $33 million in cash and equivalents. The company is also exploring options to meet the equity requirement, but cautions that there is no guarantee of achieving compliance by the new deadline.
InvestingPro Insights
The recent news of Trevena's impending delisting from Nasdaq aligns with several concerning financial indicators highlighted by InvestingPro. According to InvestingPro Tips, Trevena is "quickly burning through cash" and "analysts do not anticipate the company will be profitable this year." These factors likely contributed to the company's inability to meet Nasdaq's minimum stockholder's equity requirement.
InvestingPro data reveals that Trevena's market capitalization has dwindled to just $3.89 million, reflecting the market's pessimistic outlook on the company's prospects. The company's revenue growth has also been alarmingly negative, with a -82.89% decline in the last twelve months as of Q2 2024. This steep revenue drop correlates with another InvestingPro Tip stating that "analysts anticipate sales decline in the current year."
The company's financial struggles are further underscored by its operating income margin of -7980.81% for the last twelve months, indicating severe operational inefficiencies. This data point supports the InvestingPro Tip that Trevena "suffers from weak gross profit margins."
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on Trevena, providing a deeper understanding of the company's financial health and market position during this critical period.
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