Local biotech TrovaGene Inc. is back in line with the Nasdaq rules, meaning — for the time being — the company won’t get delisted from the public market.
The company, which is developing urine and blood tests for cancer, was running the risk of getting booted from the Nasdaq at the end of May, when TrovaGene’s stock price was dipping below $1 per share. To regain compliance with the Nasdaq’s rules, the company had to meet the closing bid price of $1 for 10 consecutive days. And TrovaGene’s stock did just that by July 6. As of mid-morning Monday, TrovaGene’s stock was selling for $1.25 per share.
TrovaGene has been through the ringer the past few quarters. In the fourth quarter last year, the company announced it was reorganizing to serve research customers rather than medical professionals. The company’s CEO, Bill Welch, said marketing directly to clinical research laboratories, cancer centers, and research institutes would lower costs and mitigate “sales conflicts” that arise with existing laboratory customers.
The company laid off 20 people as a result of the reorganization, bringing about $4 million per year back onto the books. Then in March, the company announced yet another reorganization that resulted in the layoffs of 30 additional people. The estimated cost savings was about $8 million per year.