Adagio Medical has initiated a strategic review of its business and will lay off more than half its full time workers as the maker of cryoablation ablation devices faces delisting on the Nasdaq exchange.
Its board of directors said the medtech will focus on shoring up finances and is exploring all alternatives, including an acquisition, merger, or sale, according to a Sept. 23 press release.
Additionally, 25 of the device maker’s 43 full-time employees have been let go, in a move expected to result in $1.3 million in severance and related cash expenditures, according to an SEC filing.
Shares of the company closed Wednesday at 23 cents, down 53.05%. It had traded for a 52-week high of $2.58.
“There can be no assurance that its exploration will result in Adagio pursuing a transaction or that any transaction, if pursued, will be completed on attractive terms, if at all,” the company said in a statement. “Adagio has not set a timetable for completion of this evaluation process and does not intend to disclose further developments unless and until it is determined that further disclosure is appropriate or necessary.”
The company reported that as of June 20 it had an estimated $7.7 million in cash, cash equivalents and investments in marketable securities, and was running a $415,000 deficit on its balance sheets for the 2026 second quarter.
In August, the Nasdaq served notice on Adagio for failing to meet the exchange’s $2.5 million minimum stockholders’ equity requirement.
Despite the setback, Adagio said it will continue to advance its PMA application with the FDA for the vCLAS ventricular ablation system, which holds a CE Mark. In May, the company submitted results of a pivotal study to support approval of the system.
The ultralow-temperature device uses liquid nitrogen to reach -196 degrees Celsius and rapidly freeze the heart tissue that drives potentially fatal VT rhythms in patients with cardiomyopathy.
Adagio, which went public in 2024 as part of a SPAC deal, paused the European launch of the vCLAS catheter in early 2025 to focus on FDA approval and also began trimming staff at that time.