Compugen Regains Compliance with Nasdaq Minimum Bid Price Requirement

Rhea-AI Summary

Compugen Ltd. (Nasdaq: CGEN) (TASE: CGEN) has announced that it has regained compliance with the minimum bid price requirement set forth in the Nasdaq Listing Rule 5550(a)(2). The company received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC, confirming that it evidenced a closing bid price at or greater than $1.00 per ordinary share for the last 10 consecutive business days from December 19, 2023, to January 3, 2024.

Insights

Financial Analyst

Regaining compliance with Nasdaq's Minimum Bid Price Requirement is a crucial financial milestone for Compugen Ltd., which reflects positively on its market perception and financial stability. The company's ability to maintain a share price above the $1 threshold over the mandated 10-day period suggests a restored investor confidence, potentially stemming from recent corporate achievements or a favorable shift in market sentiment towards biotechnology stocks. This development is likely to enhance the company's attractiveness to institutional investors and funds that have mandates to invest in Nasdaq-listed companies, thereby potentially increasing trading liquidity.

From a financial perspective, the compliance alleviates the immediate risk of delisting, which can have severe repercussions such as reduced access to capital markets and a diminished share visibility among investors. It is also an indicator that the company may be on an upward trajectory, which could have positive implications for future fundraising efforts and strategic partnerships. However, investors should monitor the company's performance to ensure that the share price stability is backed by fundamental growth in the company's core business activities, rather than short-term market fluctuations.

Market Research Analyst

The biotechnology sector is known for its high volatility, with stock prices often reflecting the potential of breakthrough therapies and the inherent risks associated with clinical trials. Compugen's compliance with the Nasdaq Minimum Bid Price Requirement suggests that the market may anticipate positive developments from the company's pipeline or operational efficiencies. It is important to analyze the broader industry trends, including competitor performance, regulatory environment and technological advancements, to understand the potential impact on Compugen's market position.

Furthermore, the regained compliance could be seen as a proxy for the company's management effectiveness in navigating the regulatory and financial aspects of the biotech industry. An analysis of the company's strategic initiatives and operational execution should be conducted to assess whether this compliance milestone is part of a larger, sustainable growth strategy. Investors and stakeholders should consider the long-term implications of the company's research and development capabilities, as well as its computational target discovery approach, which could differentiate it from competitors and drive future valuation.

HOLON, Israel, Jan. 8, 2024 /PRNewswire/ -- Compugen Ltd. (Nasdaq: CGEN) (TASE: CGEN) a clinical-stage cancer immunotherapy company and a pioneer in computational target discovery, announced today that on January 4, 2024, it received a notification letter (the "Notification Letter") from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that it had regained compliance with the minimum bid price requirement set forth in the Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement").

As announced on November 3, 2023, the Company was notified that its ordinary shares failed to maintain a minimum bid price of $1.00 over the previous 30 consecutive business days as required by the Minimum Bid Price Requirement. To regain compliance with the Minimum Bid Price Requirement, the closing bid of the Company's ordinary shares needed to be at least $1.00 for a minimum of 10 consecutive business days.

The Notification Letter confirmed that the Company evidenced a closing bid price at or greater than the $1.00 per ordinary share minimum requirement for the last 10 consecutive business days from December 19, 2023 to January 3, 2024 and that the Company has regained compliance with the Minimum Bid Price Requirement.

About Compugen

Compugen is a clinical-stage therapeutic discovery and development company utilizing its broadly applicable predictive computational discovery capabilities to identify new drug targets and biological pathways for developing cancer immunotherapies. Compugen has developed two proprietary product candidates: COM701, a potential first-in-class anti-PVRIG antibody and COM902, a potential best-in-class antibody targeting TIGIT for the treatment of solid tumors. Compugen also has a clinical stage partnered program, rilvegostomig (previously AZD2936), a PD-1/TIGIT bispecific antibody where the TIGIT component is derived from Compugen's clinical stage anti-TIGIT antibody, COM902, in Phase 3 development by AstraZeneca through a license agreement for the development of bispecific and multispecific antibodies. In addition, the Company's therapeutic pipeline of early-stage immuno-oncology programs consists of programs aiming to address various mechanisms of immune resistance, of which the most advanced program, in IND enabling studies is COM503, which is licensed to Gilead.

COM503 is a potential first-in-class, high affinity antibody which blocks the interaction between IL-18 binding protein and IL-18, thereby freeing natural IL-18 in the tumor microenvironment to inhibit cancer growth. Compugen is headquartered in Israel, with offices in San Francisco, CA. Compugen's shares are listed on Nasdaq and the Tel Aviv Stock Exchange under the ticker symbol CGEN. 

Company contact:

Yvonne Naughton, Ph.D.
Head of Investor Relations and Corporate Communications
Email: ir@cgen.com
Tel: +1 (628) 241-0071  

 

View original content:https://www.prnewswire.com/news-releases/compugen-regains-compliance-with-nasdaq-minimum-bid-price-requirement-302028313.html

SOURCE Compugen Ltd.

FAQ

What notification did Compugen Ltd. (Nasdaq: CGEN) receive from Nasdaq?

Compugen Ltd. (Nasdaq: CGEN) received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC, confirming that it evidenced a closing bid price at or greater than $1.00 per ordinary share for the last 10 consecutive business days from December 19, 2023, to January 3, 2024.

What was the reason for the notification letter from Nasdaq?

The reason for the notification letter was that Compugen Ltd. (Nasdaq: CGEN) failed to maintain a minimum bid price of $1.00 over the previous 30 consecutive business days as required by the Minimum Bid Price Requirement.

What is the Minimum Bid Price Requirement for Nasdaq listing?

The Minimum Bid Price Requirement is set forth in the Nasdaq Listing Rule 5550(a)(2), which requires a minimum bid price of $1.00 for ordinary shares over a specified period.

When did Compugen Ltd. (Nasdaq: CGEN) regain compliance with the Minimum Bid Price Requirement?

Compugen Ltd. regained compliance with the Minimum Bid Price Requirement after evidencing a closing bid price at or greater than $1.00 per ordinary share for the last 10 consecutive business days from December 19, 2023, to January 3, 2024.