THOUSAND OAKS, Calif. - Atara Biotherapeutics, Inc. (NASDAQ:ATRA), a biotechnology firm focused on T-cell immunotherapy, has announced a reverse stock split of its common stock at a ratio of 1-for-25, effective June 20, 2024. The action is aimed at ensuring the company's compliance with Nasdaq's minimum bid price requirement.
The reverse stock split was decided upon following approval from the company's shareholders during the Annual Meeting on June 10, 2024, and subsequently ratified by the company's Board. This measure will reduce the number of outstanding common shares from approximately 122.6 million to about 4.9 million, subject to adjustments for fractional shares, which will be paid in cash instead of stock.
The company's common stock will begin trading on a post-split basis when the market opens on June 20, 2024. Atara's authorized shares and the par value per share will remain unchanged. Proportionate adjustments will be made to the number of shares underlying Atara's outstanding equity awards, shares issuable under equity incentive plans, and the exercise or conversion prices of existing agreements.
Stockholders need not take any action if their shares are held electronically in book-entry form or in brokerage accounts. However, those holding stock certificates will receive instructions from the transfer agent, Computershare Trust Company, N.A., after the effective date of the split.
Atara Biotherapeutics is known for pioneering allogeneic T-cell immunotherapy, including the first regulatory approval of such a therapy. The company focuses on treatments for cancers and autoimmune diseases linked to the Epstein-Barr virus (EBV). Atara's platform allows for off-the-shelf cell therapies that can be rapidly delivered to patients.
In other recent news, Atara Biotherapeutics has reported significant advancements on two fronts. The company shared promising preclinical data on its ATA3219 therapy, an allogeneic anti-CD19 chimeric antigen receptor (CAR) T-cell therapy candidate. Designed for the treatment of B-cell driven autoimmune diseases, ATA3219 demonstrated potent B-cell depletion with a reduced inflammatory profile. Furthermore, ATA3219 is currently being investigated in a Phase 1 trial for relapsed/refractory B-cell non-Hodgkin’s lymphoma, with initial clinical data expected in the fourth quarter of 2024.
Simultaneously, Atara Biotherapeutics has submitted a Biologics License Application (BLA) to the U.S. Food and Drug Administration for its product, tabelecleucel (tab-cel®), aimed at treating Epstein-Barr virus positive post-transplant lymphoproliferative disease. This submission could potentially result in a $20 million milestone payment from Pierre Fabre Laboratories upon FDA acceptance, with an additional $60 million upon FDA approval.
InvestingPro Insights
As Atara Biotherapeutics (NASDAQ:ATRA) implements a reverse stock split to maintain compliance with Nasdaq's minimum bid price requirement, it's essential for investors to consider the company's current financial health and market performance. PRONEWS24 is available to provide readers with an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering comprehensive insights into Atara's financial metrics and stock valuation.
InvestingPro Data shows a challenging financial landscape for Atara, with a market capitalization of $61.53 million and a negative price-to-earnings (P/E) ratio of -0.25, reflecting the company's lack of profitability in the last twelve months as of Q1 2024. Moreover, the company's revenue has declined by 39.63% over the same period, indicating significant challenges in generating growth. These figures are critical for investors to consider, especially in the context of the reverse stock split and the company's strategy to remain listed on a major exchange.
From the InvestingPro Tips, two key points stand out: Analysts do not anticipate Atara will be profitable this year, and the company is quickly burning through cash. These insights suggest that while the reverse stock split may address immediate listing concerns, underlying financial issues persist that could impact long-term investor confidence.
For those seeking to delve deeper into Atara's financials and stock performance, there are additional InvestingPro Tips available, which can provide a more nuanced understanding of the company's position and prospects. With the promocode PRONEWS24, readers can access these valuable tips and make more informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.