Brickell Biotech gets delisting notice from Nasdaq

BOULDER — The Nasdaq has told Brickell Biotech Inc. (Nasdaq: BBI) that it is at risk of being removed from the public market after a sustained period of trading below $1 per share.

The Boulder developer of a clinical-stage anti-excessive sweating treatment received the notice last week and has until mid-February of next year to regain compliance, according to disclosures filed with the U.S. Securities and Exchange Commission Friday.

Brickell most recently posted a $5 million loss in the last quarter and is a pre-revenue firm as its flagship drug Sofpironium Bromide has yet to receive regulatory approval for sale in any country.

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However, the company and its Japanese development partner Kaken Pharmaceutical Co. Ltd. reported positive results for a Phase III clinical trial in June, and expects a decision on whether they can sell the treatment in Japan yet this year.

In the filing, the company said it will “consider available options to resolve the deficiency and regain compliance” over the coming months.

Companies listed on the Nasdaq are generally required to have their stocks trade at $1 per share or higher and are given notice of potential removal if their stocks close below that $1 threshold for 30 straight business days.

The delisting threat ends if a company’s stock closes at $1 per share or higher for 10 straight trading days. While the stock price of a company is largely ruled by investor sentiment, publicly-traded firms can increase their stock price by consolidating shares outstanding into a smaller number of relatively higher-value securities in a process known as a reverse stock split.

Fellow Boulder-based clinical-stage drug developer Miragen Therapeutics Inc. (Nasdaq: MGEN) also faced delisting from the Nasdaq last year but regained compliance in late January.

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