Allarity Therapeutics Regains Compliance with NASDAQ Minimum Bid Price Requirement

Rhea-AI Summary

Allarity Therapeutics (NASDAQ: ALLR) has regained compliance with Nasdaq's minimum bid price requirement. The company received formal notice on October 9, 2024, confirming that its stock has maintained a closing bid price of $1.00 or more for 20 consecutive trading days since September 11, 2024. This resolves the compliance issue with Nasdaq's Listing Rule 5550(a)(2).

CEO Thomas Jensen expressed satisfaction with the resolution, stating that the company can now focus on advancing its stenoparib program. The ongoing Phase 2 trial in advanced ovarian cancer has been delivering encouraging data. Allarity Therapeutics aims to develop this novel therapy to address the urgent need for new treatment options in advanced ovarian cancer, where patients currently face alternatives.

Positive

• Regained compliance with Nasdaq's minimum bid price requirement
• Stock maintained closing bid price of $1.00 or more for 20 consecutive trading days
• Phase 2 trial of stenoparib in advanced ovarian cancer delivering encouraging data

Negative

• None.

Insights

Financial Analyst

Allarity Therapeutics' regaining compliance with NASDAQ's minimum bid price requirement is a positive development, albeit with immediate financial impact. This news primarily affects the company's listing status rather than its fundamental operations or financials.

The maintenance of a $1.00 or higher closing bid price for 20 consecutive trading days suggests improved investor confidence and market perception. However, for a company with a market cap of only about $2 million, sustaining this price level may remain challenging.

The CEO's statement redirects focus to their clinical progress, particularly the Phase 2 trial of stenoparib in advanced ovarian cancer. While encouraging data from this trial could be a significant catalyst, investors should note that Phase 2 results are still far from potential commercialization.

For retail investors, this compliance news reduces the immediate risk of delisting, which is positive. However, it's important to remember that small-cap biotech stocks like ALLR remain highly speculative investments, with success heavily dependent on clinical trial outcomes and future financing capabilities.

Medical Research Analyst

The key focus for Allarity Therapeutics from a research perspective is their stenoparib program, which is currently in Phase 2 trials for advanced ovarian cancer. This is a critical area of unmet medical need, as ovarian cancer often presents at advanced stages with treatment options.

Stenoparib, as a PARP inhibitor, belongs to a class of drugs that have shown promise in ovarian cancer, particularly in patients with BRCA mutations. However, the market for PARP inhibitors is becoming increasingly competitive, with several approved drugs already available.

The company's mention of "encouraging data" from the Phase 2 trial is noteworthy, but without specific efficacy or safety details, it's difficult to assess its true potential. Investors should watch for peer-reviewed publications or conference presentations of this data to better understand stenoparib's competitive positioning.

While regaining NASDAQ compliance is positive for the company's visibility and access to capital, the true value driver will be the clinical success and potential market differentiation of stenoparib.

Boston (October 10, 2024) — Allarity Therapeutics, Inc. (“Allarity” or the “Company”) (NASDAQ: ALLR), a clinical-stage pharmaceutical company dedicated to developing personalized cancer treatments, today announced that on October 9, 2024, it received a formal notice from The Nasdaq Stock Market, LLC’s Office of General Counsel (“Nasdaq”). The notice confirmed that the Company has regained compliance with the minimum bid price requirement as set forth in Nasdaq’s Listing Rule 5550(a)(2) (the “Bid Price Rule”). Nasdaq noted that since September 11, 2024, Allarity’s stock has maintained a closing bid price of $1.00 or more for 20 consecutive trading days, thereby meeting the requirements for regaining compliance with the Bid Price Rule.

Thomas Jensen, CEO of Allarity Therapeutics, stated, “We are pleased to report that Nasdaq has recognized our compliance with the minimum bid price requirement. With the resolution of this compliance issue, we can continue to build upon the great progress made during 2024 by concentrating our resources on advancing the stenoparib program, where the Phase 2 trial in advanced ovarian cancer has continued to deliver encouraging data. Our focus remains on progressing this novel therapy, as new treatment options are urgently needed for advanced ovarian cancer patients, who currently face very limited alternatives.”

About Stenoparib
Stenoparib is an orally available, small-molecule dual-targeted inhibitor of PARP1/2 and Tankyrase 1 and 2. At present, tankyrases are attracting significant attention as emerging therapeutic targets for cancer, principally due to their role in regulating the Wnt signaling pathway. Aberrant Wnt/β-catenin signaling has been implicated in the development and progression of numerous cancers. By inhibiting PARP and blocking Wnt pathway activation, stenoparib’s unique therapeutic action shows potential as a promising therapeutic. Allarity has exclusive global rights for the development and commercialization of stenoparib, which was originally developed by Eisai Co. Ltd. and was formerly known under the names E7449 and 2X-121.

About Allarity Therapeutics
Allarity Therapeutics, Inc. (NASDAQ: ALLR) is a clinical-stage biopharmaceutical company dedicated to developing personalized cancer treatments. The Company is focused on development of stenoparib, a novel PARP/Tankyrase inhibitor for advanced ovarian cancer patients, using its DRP^® companion diagnostic for patient selection in the ongoing phase 2 clinical trial, NCT03878849. Allarity is headquartered in the U.S., with a research facility in Denmark, and is committed to addressing significant unmet medical needs in cancer treatment. For more information, visit www.allarity.com.

Follow Allarity on Social Media
LinkedIn: https://www.linkedin.com/company/allaritytx/
X: https://twitter.com/allaritytx

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide the Company’s current expectations or forecasts of future events. The words “anticipates,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predicts,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding the expected clinical progress of stenoparib in advanced ovarian cancer, the potential for the drug to provide significant clinical benefit to patients, and the Company’s strategy to advance regulatory approval processes for stenoparib based on ongoing trial data. Any forward-looking statements in this press release are based on management’s current expectations of future events and are subject to multiple risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, challenges related to raising sufficient capital for clinical operations, uncertainties around the interpretation of clinical trial data, risks that initial positive data may not be replicated in larger trials, potential delays or failures in securing regulatory approvals, and the ability to bring stenoparib or other pipeline candidates to market. For a discussion of other risks and uncertainties, and other important factors, any of which could cause our actual results to differ from those contained in the forward-looking statements, see the section entitled “Risk Factors” in our Form S-1 registration statement filed on October 30, 2023, as amended and our Form 10-K annual report on file with the Securities and Exchange Commission (the “SEC”), available at the SEC’s website at www.sec.gov, and as well as discussions of potential risks, uncertainties and other important factors in the Company’s subsequent filings with the SEC. All information in this press release is as of the date of the release, and the Company undertakes no duty to update this information unless required by law.

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Company Contact:         
        investorrelations@allarity.com

        
Media Contact:
        Thomas Pedersen
        Carrotize PR & Communications
        +45 6062 9390
        tsp@carrotize.com

Attachment

• Allarity Therapeutics - Press Release Regains Compliance with NASDAQ Price Requirement

FAQ

When did Allarity Therapeutics (ALLR) regain compliance with Nasdaq's minimum bid price requirement?

Allarity Therapeutics regained compliance with Nasdaq's minimum bid price requirement on October 9, 2024, as confirmed by a formal notice from Nasdaq.

What is the current focus of Allarity Therapeutics (ALLR) after regaining Nasdaq compliance?

After regaining Nasdaq compliance, Allarity Therapeutics is focusing on advancing its stenoparib program, particularly the Phase 2 trial in advanced ovarian cancer.

How long did Allarity Therapeutics (ALLR) maintain the required closing bid price to regain compliance?

Allarity Therapeutics maintained a closing bid price of $1.00 or more for 20 consecutive trading days, starting from September 11, 2024.

What is the significance of the stenoparib program for Allarity Therapeutics (ALLR)?

The stenoparib program is significant for Allarity Therapeutics as it aims to develop a novel therapy for advanced ovarian cancer patients who currently have treatment options.