Humanigen Inc shares have plummeted more than 90% over the past month, and now trade at a little over a penny per share after the clinical-stage biopharmaceutical company said it is facing bankruptcy after negotiations for a reverse merger with an unnamed, privately-held biopharma company ended.
Humanigen noted that it is unable to find another source of financing that would allow it to maintain its Nasdaq listing, including a minimum share price of $1, and it is now trading on OTC Pink Market.
Humanigen stock will also be dropped from the S&P Total Market Index (TMI), which is designed to track the broad equity market, including large-, mid-, small-, and micro-cap stocks.
It has been a dramatic fall from grace for Humanigen as the company's stock price traded at more than $20 per share just three years ago when its lead drug lenzilumab to treat COVID-19 was in late-stage testing.
However in late 2021, its emergency use authorisation application was rejected by the US Food and Drug Administration (FDA), and Humanigen’s efforts to repurpose the drug for other indications, including as an add-on to CAR-T therapies for non-Hodgkin's lymphoma (NHL), rare blood cancer chronic myelomonocytic leukaemia, and graft versus host disease (GvHD), failed to materialize.
In its latest financial statement from the end of March, Humanigen revealed that it had $3 million in cash, down from around $10 million at the end of 2022.
Contact Sean at sean@proactiveinvestors.com