Insmed gets a warning

Ten years ago to the day, Insmed’s stock was trading at $15 a share.

But with its shares trading at around 72 cents each, the Richmond-based biopharmaceutical company announced yesterday it faces being delisted from the NASDAQ Stock Market because its stock has traded at below $1 per share for the last 30 days.

Insmed said it has until Dec. 15 to regain compliance by having its stock trade at $1 per share or higher for 10 consecutive days.

The company said if it is unsuccessful in regaining compliance, it will receive written notification from NASDAQ that its stock will no logner be listed on that market. It will have a chance to appeal that decision or it could be granted an additional 180 days grace period.

Insmed said in its release:

The Company will seek to regain compliance within this cure period and is considering appropriate business measures to address compliance with the continued listing standards of The NASDAQ Stock Market.

See the full release here.

Insmed made a $118,000 profit in its most recent quarter that ended March 31. That profit was compared to $117 million profit it reported in the same quarter 2009, thanks to the sale of one of its technologies to Merck for $130 million in March 2009.

The company’s stock has been trading below $1 a share since early May.

Ten years ago to the day, Insmed’s stock was trading at $15 a share.

But with its shares trading at around 72 cents each, the Richmond-based biopharmaceutical company announced yesterday it faces being delisted from the NASDAQ Stock Market because its stock has traded at below $1 per share for the last 30 days.

Insmed said it has until Dec. 15 to regain compliance by having its stock trade at $1 per share or higher for 10 consecutive days.

The company said if it is unsuccessful in regaining compliance, it will receive written notification from NASDAQ that its stock will no logner be listed on that market. It will have a chance to appeal that decision or it could be granted an additional 180 days grace period.

Insmed said in its release:

The Company will seek to regain compliance within this cure period and is considering appropriate business measures to address compliance with the continued listing standards of The NASDAQ Stock Market.

See the full release here.

Insmed made a $118,000 profit in its most recent quarter that ended March 31. That profit was compared to $117 million profit it reported in the same quarter 2009, thanks to the sale of one of its technologies to Merck for $130 million in March 2009.

The company’s stock has been trading below $1 a share since early May.

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Linda Heath
Linda Heath
14 years ago

This company has been a Richmond success story in the past…sorry to here about this difficulty. The article doesn’t really explain what’s going on. If they achieved $117 million in profit in 3/2009 by selling technology for $130 million then their core business must have lost $30 million in the same period. A $118,000 profit (or break-even) at 3/2010 versus a $30 million loss a year ago seems like $30 million improvement in the retained business. What were the revenues for the respective periods? When they sold the technology to Merck, did they sell the “guts” of the company or… Read more »