The Columbia-based biotech company Celsion tried to calm nervous investors in a conference call Wednesday morning after the company announced that the American Stock Exchange has warned that it was not meeting the basic requirements needed to be listed on the exchange.
Investors are concerned about the massive slide in the share price from almost $6.50 per share last August to trading below $2 a share Wednesday afternoon. The stock price was trading around $30 per share in February 2004. Investors had run up the stock price to $30 in 2004 after Celsion won Food and Drug Administration approval to sell Prolieve, said Tony Deasey, chief financial officer for Celsion.
Deasey said the stock price fell because the company announced in May a voluntary recall of its Prolieve prostate cancer treatment medication. Celsion voluntarily recalled Prolieve after it changed the manufacturing of Prolieve from a plant in Indianapolis to a plant in Mexico. Deasey said after the plant switch, the product “didn?t meet our standards.” But he added that the recall had nothing to do with safety.
The American Stock Exchange told Celsion that the company is at risk of being delisted from the exchange because of several troubling financial items. Celsion?s shareholder equity has fallen below $4 million standard. It has suffered ongoing loses, particularly net losses, over the past five years. And, more importantly, Celsion?s market capitalization has fallen below the exchange?s required $50 million.
The company has until July 17 to deliver an 18-month action plandetailing what will be done so that Celsion can meet the requirements.
The company believes sales of its Prolieve prostate cancer fighting treatment could top $15 million per year.
Last quarter, Celsion reported $2.4 million in revenue and a net loss of $1.8 million.
The company forged a partnership with Boston Scientific that gives Boston Scientific rights to experimental therapy and options for an equity stake in Celsion.
Olanoff said the company is hopeful Celsion will exercise those options. Last August, Boston Scientific loaned Celsion $15 million.
