November 22, 2016

Biostage threatened with NASDAQ delisting

PHOTO/LAURA FINALDI
Biostage CEO Jim McGorry (left) and Chief Medical Officer Saverio La Francesca hold one of the company's synthetic scaffolds that have worked to regrow esophaguses in pigs.

Holliston's Biostage organ implant company has been given 180 days to raise its stock price above $1 or risk delisting from the NASDAQ stock market.

Nasdaq provided Biostage with a 180-day compliance period, in which to regain compliance with the minimum bid price requirement, according to Biostage. The company's stock had been flirting with the important $1 line for months and finally fell below on Oct. 7 when the stock fell by 14.55 percent.

That drop followed the announcement that the company was pushing back human trials of its bioengineered organ implants in light of input from the U.S. Food and Drug Administration, to extend the duration of ongoing animal studies and thus push back its investigational new drug (IND) filing.

Biostage's CEO Jim McGorry said in a statement that he was confident of the company's ability to regain compliance.

"We strongly believe we have a number of catalytic milestones in the near-term that have the potential to drive value for Biostage," he said in a statement that referenced a recent round of funding the company has undertaken. "We are focused on solving our short-term financing needs and our goal is to pursue a financing strategy that is in the best interest of the future of Biostage and all of our shareholders."

Biostage has until until May 17 to come back into compliance.

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