Icelandic firm DeCode Genetics will be removed from the NASDAQ if the company can't find a way to boost its share prices. DeCode's stock has plunged 54 percent since early September, and though a series of positive announcements have boosted share prices, DeCode's stock is currently trading at about 53 cents. At that price the company's market cap is at $32.8 million--short of the $50 million minimum needed to stay on the NASDAQ stock exchange.
Iceland has been hit with a serious banking crisis of its own, but CEO Kari Stefánsson said ongoing problems in the U.S. are contributing to the company's troubles. "We have been seriously influenced by the American banking crisis and not the Icelandic," he told Nature News. "But we will survive. We are working on refinancing and restructuring the company. And we are fairly optimistic today that we will succeed."
DeCode's stock has been on a steady decline since 2006, which was speeded by manufacturing problems and a failed clinical trial. In the last month, however, the company has announced new findings on schizophrenia and basal-cell carcinoma, and filed an application to begin human testing of an Alzheimer's drug. But is it too little, too late? Robin Campbell, a biotech-equities analyst at the London office of Jefferies International investment bank, says three issues will be pivotal in DeCode's survival: The company must find a partner for two stalled drugs, rapidly expand its diagnostics business, and prepare to repay $238 million in debt. The company has until October 30 to boost its market cap to the minimum level, or it will be delisted.
- read this Nature News article for more