HUNTINGDON VALLEY, Pa., Nov. 23 /PRNewswire-FirstCall/ -- Cellegy Pharmaceuticals, Inc. today announced that the Company received a letter from The Nasdaq Stock Market notifying Cellegy that for ten consecutive trading days the market value of the common stock had been below the minimum price that would result in a market value of the common stock of at least $35,000,000 as required for continued inclusion on the Nasdaq SmallCap Market by Marketplace Rule 4310(c)(2)(B)(ii) (the “Rule”). Cellegy has until December 19, 2005 to regain compliance. If, at any time before December 19, 2005, the aggregate market value of Cellegy’s common stock is $35,000,000 or more for a minimum of ten consecutive business days, the Nasdaq staff will determine if Cellegy complies with the Rule. Based upon 29,831,625 shares outstanding on November 14, 2005, Cellegy’s stock price would have to equal or exceed approximately $1.18 for a minimum of ten consecutive business days in order to regain compliance.
If Cellegy does not regain compliance with The Nasdaq SmallCap Market continued listing requirements by December 19, 2005, the Nasdaq staff will provide written notification that the Company’s securities will be delisted. Cellegy may appeal to a Listing Qualification Panel. If the Company’s common stock is delisted from the Nasdaq SmallCap Market, Cellegy would likely seek to have the common stock trade over the OTC Bulletin Board. Delisting from The Nasdaq SmallCap Market will likely reduce the liquidity of Cellegy’s common stock, could cause certain investors not to trade in Cellegy’s common stock and result in a lower stock price, and could have an adverse effect on the Company.
In the letter, Nasdaq also notified Cellegy that it did not currently satisfy alternate standards for continued listing under Marketplace Rules 4310 (c)(2)(B)(i), which requires minimum stockholders’ equity of $2,500,000, or 4310(c)(2)(B)(iii), which requires net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years.
About Cellegy
Cellegy Pharmaceuticals is a specialty biopharmaceutical company that develops and commercializes prescription drugs for the treatment of women’s health care conditions, including sexual dysfunction, HIV prevention and gastrointestinal disorders. In October 2004, Cellegy acquired Biosyn, Inc., a privately held biopharmaceutical company in Huntingdon Valley, Pennsylvania. The addition of Biosyn, a leader in the development of novel microbicide gel products for contraception and the reduction in transmission of HIV in women, expands Cellegy’s near term product pipeline and complements Cellegy’s women’s health care focus. Cellegy believes that Savvy(R) (C31G vaginal gel), currently undergoing Phase 3 clinical studies in the United States and Africa, is one of the most clinically advanced products in development for the reduction in transmission of HIV.
Fortigel(TM) (testosterone gel), branded Tostrex(R) outside the United States, is marketed in Sweden for the treatment of male hypogonadism also by ProStrakan. Approvals of Rectogesic and Tostrex by the other member states of the European Union are being sought through the Mutual Recognition Procedure. Cellegesic, for the treatment of anal fissures, was the subject of an FDA Not Approvable letter in December 2004, was resubmitted to the FDA in April 2005 and is currently under review at the FDA.
Cellegy Pharmaceuticals, Inc.
CONTACT: Richard C. Williams, Chairman and Interim CEO, +1-650-616-2200,or Robert J. Caso, Vice President, Finance & CFO, +1-215-914-0900, ext.603, both of Cellegy Pharmaceuticals, Inc.
Web site: http://www.cellegy.com/
