AVEO Oncology's Comeback Hits a Snag as Nasdaq Warns It Could be Delisted
Published: Jan 02, 2015
December 31, 2014
By Krystle Vermes, BioSpace.com Breaking News Staff
Cambridge-based biotechnology company Aveo Oncology has officially been told by Nasdaq that it may be unlisted. The company’s stock price could be too low to remain on the Nasdaq Global Market, according to the Boston Business Journal.
Aveo’s shares have not closed above $1 since Nov. 1. The company was granted a 180-period by Nasdaq to get its stock back above $1 for 10 days in a row. It may also appeal to receive a second 180-day pardon after this occurs. If Aveo does not succeed, it may be transferred to the Nasdaq Capital Market, which primarily features small companies.
The Announcement of IPO Pricing
Aveo originally announced its underwritten public offering of 6 million shares at a price of $7.50 per common share back in January 2013. J.P. Morgan Securities was the sole book-running manager for the offering, with RBC Capital Markets and Canaccord Genuity serving as co-managers. At the time, Aveo granted the underwriters a 30-day option to purchase an additional 1,000,050 shares.
All of the shares were set to be sold by Aveo, and the gross proceeds were expected to be approximately $50 million before taking underwriting discounts into consideration.
The Fall of Tivozanib
Aveo announced in conjunction with Astellas Pharma Inc. that the U.S. Food and Drug Administration had not approved of tivozanib after examining a well-controlled trial back in May 2013. The FDA’s Oncologic Drugs Advisory Committee claimed that the drug did not show a favorable benefit-to-risk evaluation for the treatment of renal cell carcinoma.
“While we are disappointed with the outcome of the ODAC vote, we remain confident in the efficacy, safety and tolerability of tivozanib in RCC patients,” said Tuan Ha-Ngoc, president and chief executive officer of Aveo. “We are committed to the RCC patient community and will work closely with the FDA to address the issues discussed by the panel today as the Agency continues its ongoing review of the New Drug Application for tivozanib.”
The ODAC looked at findings from a total of 17 trials with more than 1,000 patients. The group provides the FDA with expert advice and recommendations, although the FDA is not obligated to comply with the suggestions. The New Drug Application for tivozanib was submitted back in September 2012.