Marinus (NASDAQ:MRNS) Pharmaceuticals, Inc. (NASDAQ:MRNS) has received two separate deficiency notices from The Nasdaq Stock Market, LLC, indicating a risk of delisting from The Nasdaq Global Market. The notices, dated December 6, 2024, were issued because the company's common stock failed to meet the minimum bid price and market value of listed securities requirements for continued listing.
According to InvestingPro data, the stock has experienced a dramatic 97% decline year-to-date, with its current market capitalization standing at just $15.12 million.
For the past 30 consecutive business days, Marinus Pharmaceuticals' common stock has closed below the $1.00 minimum bid price, violating Nasdaq Listing Rule 5450(a)(1). Additionally, the market value of the company's listed securities has remained below the $50.0 million threshold required by Nasdaq Listing Rule 5450(b)(2)(A).
InvestingPro analysis reveals concerning fundamentals, including a significant debt burden of $95.19 million and a weak financial health score, suggesting continued challenges ahead. Get access to 13 additional ProTips and comprehensive analysis with an InvestingPro subscription.
Despite the notices, the common stock of Marinus Pharmaceuticals continues to trade on The Nasdaq Global Market under the ticker "MRNS." The company has been given until June 4, 2025, to regain compliance with both the minimum bid price requirement and the minimum market value of listed securities requirement.
Trading near its 52-week low of $0.26, the stock's RSI indicates oversold territory, as highlighted in InvestingPro's detailed research report, available along with comprehensive analysis of 1,400+ US stocks. To comply with the bid price rule, the closing bid price must reach at least $1.00 per share for a minimum of 10 consecutive business days within the 180-day period.
If the company fails to meet the requirements by the compliance date, it may be eligible for an additional 180-day period, during which it can transfer to The Nasdaq Capital Market, if it meets all other listing criteria except the bid price requirement.
Marinus Pharmaceuticals has stated its intention to actively monitor its stock performance and may consider options to regain compliance. However, there is no assurance that the company will achieve compliance with the Nasdaq Listing Rules or maintain its listing status.
In other recent news, Marinus Pharmaceuticals has seen significant changes in its board structure and strategic direction. The company announced the resignation of three board members, with no disputes reported regarding the company's operations, policies, or practices. This change coincides with Marinus Pharmaceuticals' ongoing exploration of strategic alternatives, including potential partnerships, mergers, or a sale of the company.
Recent developments also include a failed Phase III trial of ganaxolone, leading to multiple stock downgrades by Jefferies, Baird, and Truist Securities. Despite this setback, Marinus reported Q2 net product revenues of $8 million, primarily due to ZTALMY, and plans to launch ZTALMY for tuberous sclerosis complex in the second half of 2025, targeting net product revenues between $33 million and $35 million for 2024.
The company also secured a new U.S. patent for ZTALMY, set to expire in September 2042, and successfully upheld a patent related to the use of ganaxolone. Analysts at TD (TSX:TD) Cowen and Oppenheimer have maintained a Buy rating and upgraded the stock to Outperform, respectively, expressing confidence in the potential efficacy of ganaxolone.
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