BOSTON - TransCode Therapeutics, Inc. (NASDAQ: RNAZ), an RNA oncology-focused clinical-stage company, has been granted conditional continued listing on The Nasdaq Stock Market. This decision follows a hearing with the Nasdaq Hearings Panel on October 1, 2024, where TransCode presented its case to remain listed despite previous non-compliance with certain Nasdaq Listing Rules.
The company faced issues with the minimum bid price requirement, the equity standard, and the shareholder approval rule for transactions. As a result, in addition to allowing the continued listing, the Panel issued a Public Reprimand Letter to TransCode, as outlined by Nasdaq Listing Rule 5815(c)(1)(D).
TransCode Therapeutics is dedicated to the development of RNA therapeutics to treat metastatic cancer, utilizing its proprietary TTX nanoparticle platform. Its lead therapeutic candidate, TTX-MC138, targets metastatic tumors that overexpress microRNA-10b, a biomarker associated with metastasis. The company is also working on a suite of RNA therapeutic candidates aimed at a range of novel genetic targets for various cancers.
The notice from Nasdaq requires TransCode to meet specific conditions to regain full compliance, though the exact stipulations were not detailed in the press release. The company's ability to remain on the Nasdaq Market is contingent on fulfilling these terms within a set timeframe.
TransCode's forward-looking statements indicate plans to continue its listing on Nasdaq, but they are subject to risks such as inconsistencies in clinical trial results, challenges in drug development, funding requirements, intellectual property protection, competition, reliance on third parties, and broader market and geopolitical risks.
The information in this article is based on a press release statement. TransCode Therapeutics has not updated any information since the release. Investors are advised to consider the inherent risks and uncertainties detailed in TransCode's filings with the Securities and Exchange Commission, including its Annual Report for the year ended December 31, 2023.
In other recent news, TransCode Therapeutics has advanced to the next stage of its Phase 1 cancer trial, following unanimous approval by the Safety Review Committee. The trial is evaluating the company's leading therapeutic candidate, TTX-MC138, which is designed to inhibit microRNA-10b, a molecule linked to the development and progression of metastatic cancer. In addition, TransCode has received a $2 million grant from the National Institutes of Health to support the progression of TTX-MC138.
However, the company is also contending with potential Nasdaq delisting due to non-compliance with minimum bid price and equity requirements, and a final decision is pending from the Nasdaq Hearings Panel. Despite these challenges, TransCode has announced plans for a public stock offering, with ThinkEquity acting as the sole placement agent.
Analyst firm H.C. Wainwright has maintained a Buy rating on the company's shares, reflecting confidence in the ongoing development of TTX-MC138. These recent developments underscore TransCode's commitment to advancing its drug development program while navigating regulatory challenges.
InvestingPro Insights
TransCode Therapeutics' (NASDAQ: RNAZ) recent struggle to maintain its Nasdaq listing is reflected in its current financial metrics and market performance. According to InvestingPro data, the company's market capitalization stands at a modest $8.89 million, highlighting its small-cap status and the challenges it faces in the competitive biotechnology sector.
InvestingPro Tips reveal that TransCode is "quickly burning through cash" and "not profitable over the last twelve months," which aligns with the company's focus on developing RNA therapeutics and the capital-intensive nature of clinical-stage biotech firms. This cash burn rate is particularly relevant given TransCode's need to meet Nasdaq's continued listing requirements and fund its ongoing research and development efforts.
The stock's performance has been volatile, with InvestingPro data showing a strong 99.15% return over the last three months, contrasting sharply with a -96.37% return over the past year. This recent uptick could be related to the company's efforts to address its listing issues, but the longer-term trend remains concerning for investors.
InvestingPro Tips also indicate that TransCode "holds more cash than debt on its balance sheet," which could provide some financial flexibility as it navigates its current challenges. However, the company "suffers from weak gross profit margins" and "analysts do not anticipate the company will be profitable this year," underscoring the ongoing financial hurdles typical of early-stage biotech companies.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for TransCode Therapeutics, providing deeper insights into the company's financial health and market position.
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