Maryland-based cancer research company Avalon Pharmaceuticals said it's accounting firm has issued the company a going concern warning. The company's lead drug candidate is AVN994, a drug being studied for the treatment of solid tumors and hematological malignancies. But with it's lead product years away from approval and no other sources of revenue, the company is facing some tough times ahead.
An SEC filing provides more details about Avalon's situation. "We estimate that our current capital resources will not be sufficient to fund our operations significantly beyond May 2009 without an additional curtailment of operating and capital expenditures, additional partnership revenues, or new equity or debt financing," noted the company. Avalon will cut jobs and suspend R&D activities if it can't find additional funds.
Additionally, Avalon may be delisted from Nasdaq stock exchange because the company's stock has been trading below $1.00 since September 24, 2008. Nasdaq has suspended the enforcement of $1.0 requirement through July 20, 2009. Avalon is set to merge with Clinical Data subsidiary API, but if the merger doesn't close before July 20, Nasdaq will delist the company's stock.
- here's Avalon's release [1]
- check out the SEC filing [2]
Related Articles:
Clinical Data buys Avalon for $10M [3]
Avalon cuts back as it scrambles to raise cash [4]
Links:
[1] http://www.fiercebiotech.com/press-releases/avalon-pharmaceuticals-receives-audit-opinion-containing-going-concern-statement
[2] http://www.sec.gov/Archives/edgar/data/1162192/000095013309000960/w73411e10vk.htm
[3] http://www.fiercebiotech.com/story/clinical-data-buys-avalon-10m/2008-10-28
[4] http://www.fiercebiotech.com/story/avalon-cuts-back-it-scrambles-raise-cash/2008-08-14