Cerecor Inc., a clinical stage biopharmaceutical company, is in violation with Nasdaq listing qualifications and has been warned of being delisted, according to a filing with the Securities and Exchange Commission.
Nasdaq Listing Qualifications staff notified Cerecor on Feb. 24 that it is in violation with rule 550(a)(2) because the company’s stock price has been below $1 for 30 consecutive business days.
The notification has no direct effect on the company’s listing on the Nasdaq stock market, and Cerecor has 180 calendar days to comply with the rule. The company’s stock price must reach a closing price of above $1 for 10 consecutive business days for it not to be delisted.
Cerecor’s stock closed at 75 cents on March 3, a 1.32 percent drop from the previous close.
Cerecor completed its initial public offering in October 2015.
The company has been focusing on the research and development of drugs for major depressive disorder and substance abuse disorder.
According to the company’s 2015 annual report, Cerecor expects significant losses during the duration of developing these medications and has no insight as to when or if the products will be able to be profitable. An annual report for the 2016 fiscal year has not been filed yet.
