Novavax faces delisting threat following failed drug trial

Nasdaq has warned Novavax Inc. that its stock could be delisted if it can’t get the price consistently above a buck within the next six months.

The Gaithersburg biotech’s stock has fallen below $1 for 30 consecutive days and the company has 180 days — until Oct. 8 — to regain compliance by getting its common stock bid price up for at least 10 consecutive business days.

Novavax plans to hold a special stockholder meeting May 8 to consider a reverse stock split, according to public filings. That effectively combines shares to reduce the number of outstanding shares — and, consequently, raise their prices. It’s a move executed by many small biotechs in this boat — like Germantown’s Neuralstem (NASDAQ: CUR), Vienna’s Cel-Sci (NYSE MKT: CVM) and Gaithersburg’s Altimmune (NASDAQ: ALT) — that often contend with low share prices because of the high costs associated with research and drug development, which can cause wariness among shareholders and investors.

Novavax expects…

Read the full story from the Washington Business Journal.