Nicox has pulled out of a planned Nasdaq listing. The French biotech began gearing up to offer stock on Nasdaq earlier this year but has now hit pause on the plan in response to “the extreme volatility of the financial markets.”
When Nicox revealed its plan early in September, the Nasdaq Biotechnology Index was trading at above $3,700. The index rose higher still until around the start of October. Since then, the index has fallen sharply, resulting in it trading 13% below the level it was at when Nicox publicized its plans. The decline is the most precipitous drop in the value of the index this year.
Faced with volatile financial markets, Nicox has decided it cannot secure a Nasdaq offering that is in the interests of its existing shareholders. That conclusion led Nicox to postpone, but not abandon, its plans to list on Nasdaq.
France-based Nicox already trades on Euronext Paris and closed out June with almost €33 million ($37 million) in the bank. But with lead candidate NCX 470 moving into a 550-patient phase 2 last month, Nicox wanted to access the deeper, more numerous pockets of U.S. biotech investors. Nicox also cited a desire to get research coverage by U.S. analysts as a motivation for the Nasdaq listing.
With the dual listing plan on hold, Nicox will have to find ways to advance its pipeline without the perks of a presence on Nasdaq. The top priority is to keep NCX 470 moving toward the delivery of phase 2 data late in 2019. Nicox hopes the data will tee it up to enter phase 3.
The midphase trial is comparing three doses of NCX 470 to latanoprost in patients with open-angle glaucoma or ocular hypertension. NCX 470 is designed to release bimatoprost—sold by Allergan as Lumigan—and cell signaling molecule nitric oxide after it is administered to the eye. Given the link between nitric oxide deficiency and glaucoma, Nicox hopes releasing the signaling molecule with bimatoprost will drive down intraocular pressure by more than the Allergan drug alone.
Shares in Nicox rose 6% following the Nasdaq news.