Oncternal Therapeutics, Inc. (NASDAQ:ONCT), a pharmaceutical company, announced it received a delisting notice from The Nasdaq Stock Market LLC. The notice, received on Friday, November 22, 2024, stated that Oncternal's common stock would be suspended from trading at the opening of business on December 3, 2024, due to the company being considered a "public shell" after its recent workforce reduction and strategic alternatives exploration announced on November 14, 2024.
The delisting process will include a Form 25 Notification of Delisting filed with the Securities and Exchange Commission, which will officially remove Oncternal's securities from Nasdaq. The company has decided not to appeal the Nasdaq determination.
This development follows Oncternal's disclosure earlier in the month of a significant workforce reduction involving all remaining employees. The company's efforts to explore strategic alternatives are ongoing, but there is no certainty about securing or completing any potential transactions, nor about the benefits such transactions might bring.
Oncternal's management has cautioned that forward-looking statements in their reports, including those about not appealing the Nasdaq determination and the anticipated benefits of workforce reduction, are subject to various risks and uncertainties. These include the possibility that the company may use its capital resources sooner than expected, leading to liquidation and dissolution, and the inability to retain key personnel or secure beneficial strategic transactions.
The information presented in this article is based on a press release statement from Oncternal Therapeutics, Inc. The company, incorporated in Delaware and based in San Diego, California, is known for its work in pharmaceutical preparations. It was formerly known as GTX INC/DE before a name change on August 22, 2003.
In other recent news, Oncternal Therapeutics has been the subject of several significant developments. The company recently announced a substantial workforce reduction, with the majority of related charges expected to be recognized in the fourth quarter of 2024. As part of this downsizing, key executives James B. Breitmeyer and Richard G. Vincent will transition to part-time roles, further reducing operational costs.
Oncternal has also terminated several clinical trials, including those for ONCT-534 and ONCT-808, treatments for metastatic castration-resistant cancer and aggressive B-cell lymphoma respectively. Despite promising results from a Phase 1/2 study of ONCT-534, which demonstrated well-tolerated treatment and a notable patient showing a 50% reduction in PSA, the company decided to discontinue the trial due to the current biotechnology environment.
In light of these changes, Oncternal is exploring strategic alternatives to maximize shareholder value. These may include asset sales, licensing, mergers, or other business combinations. All product development activities will be halted and additional cost reductions implemented during this period. These recent developments underline Oncternal's commitment to strategic financial management and shareholder value maximization.
InvestingPro Insights
The recent developments at Oncternal Therapeutics (NASDAQ:ONCT) are reflected in the company's financial metrics and market performance. According to InvestingPro data, ONCT's market capitalization has dwindled to just $3.37 million, highlighting the severe impact of recent events on investor confidence. The stock's price has plummeted significantly, with a one-year price total return of -84.8% and a year-to-date return of -89.37% as of the latest data.
Despite these challenges, InvestingPro Tips reveal that Oncternal holds more cash than debt on its balance sheet, which could provide some financial flexibility during this critical period. Additionally, liquid assets exceed short-term obligations, potentially offering a buffer as the company navigates its strategic alternatives.
However, the company's financial health remains precarious. With a gross profit margin of -1060.99% and an operating income margin of -1613.1% for the last twelve months, Oncternal is struggling with profitability. This aligns with the InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for ONCT, providing a deeper understanding of the company's situation amidst these challenging times.
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