The stock of Odonate Therapeutics, Inc. (ODT) declined heavily in the current market after the company received a notification from NASDAQ about its cancelation of listing. The stock of ODT is valued at $0.99 in the current market losing more than 24.23% from the previously closed value. At the end of the last trading session, the stock of Odonate Therapeutics, Inc. (ODT) closed t $1.31. The trading volume of the stock traded in the last trading session was around 596.64K shares.
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Reason for the stock heavy decline
Odonate Therapeutics, Inc. (ODT) on 6th January 2022 announced in a press release that they have received written notification from The NASDAQ Stock Market LLC or NASDAQ, it states to Odonate that Nasdaq acknowledges that Odonate is a public shell pursuant to Listing Rule 510. The continued listing of their securities is no longer certified. Odonate will not appeal this decision. That is why Odonate anticipates the trading of its common stock on The NASDAQ Stock Market to be paused at the beginning of trade on 18th January 2022, and that NASDAQ will submit a Form 25-NSE with the United States Securities and Exchange Commission (SEC). After which Odonate’s securities will be removed from listing and registration on The NASDAQ Stock Market. Besides, Odonate plans to submit an application with the SEC a Form 15 to request the suspension of their reporting obligations.
The stock of Odonate Therapeutics, Inc. (ODT) was trading at around $21 per share but after when they announced the no approval from FDA for its drug tesetaxel, its stock plunged by more than 78% and dropped to around $3 per share. After this decline, the company never regained its value and was on a continuous decline.
Effect on the stock
It seems like it is almost over for the stock of Odonate Therapeutics, Inc. (ODT) as NASDAQ wants to delist from the market and restrict its stock from trading.
Conclusion
This is the main problem with clinical-stage bio companies, they rely heavily on the approval of their drugs from the FDA, if it does not get that approval, all their investment done on conducting all the research and development goes in vain.
