South San Francisco-based Lyell Immunopharma , Inc., currently valued at $178 million by market capitalization, has been notified by Nasdaq of non-compliance with the minimum bid price requirement, as its common stock closed below $1.00 for 33 consecutive business days. The pharmaceutical company, specializing in cancer treatments, received the notice on January 23, 2025, but it will not immediately affect its listing on the Nasdaq Global Select Market. According to InvestingPro data, the stock has declined over 71% in the past year, with shares currently trading at $0.61.
Lyell Immunopharma (NASDAQ:LYEL) has until July 22, 2025, to regain compliance with the minimum bid price rule. To do so, the company's stock must maintain a closing bid price of at least $1.00 for at least 10 consecutive business days before the deadline. If Lyell Immunopharma fails to meet this requirement by the Compliance Date, it may be granted an additional 180 days if it transfers to The Nasdaq Capital Market and meets all other initial listing standards, except for the bid price. InvestingPro analysis reveals the stock tends to move independently of the broader market, with a negative beta of -0.36, which could affect its price recovery trajectory.
The company is considering various measures to address the issue, including a potential reverse stock split. While there is no guarantee that these efforts will be successful in regaining compliance or maintaining other Nasdaq listing criteria, InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 13.4 and holds more cash than debt on its balance sheet. Get access to 10+ additional InvestingPro Tips and comprehensive financial metrics to better assess the company's prospects.
The forward-looking statements in the press release indicate Lyell Immunopharma's intention to monitor its stock price and take necessary actions to comply with Nasdaq's rules. The company has acknowledged the risks associated with its ability to meet Nasdaq's continued listing requirements, as detailed in its SEC filings, including its Annual Report for the year ended December 31, 2023, and its Quarterly Report for the quarter ended September 30, 2024.
In other recent news, Lyell Immunopharma has seen significant developments. The biopharmaceutical company recently announced the resignation of Hans Bishop from its Board of Directors, a decision not resulting from any disagreement with the company. Lyell Immunopharma has also enhanced its clinical-stage portfolio with the acquisition of ImmPACT Bio USA Inc. This acquisition introduces IMPT-314, a CAR T-cell therapy targeting B-cell non-Hodgkin lymphoma, into Lyell's pipeline. The therapy is expected to enter pivotal development in 2025. Following the acquisition, Lyell expects its current cash balance to cover operations into 2027, including significant clinical milestones for each pipeline program. Despite these developments, H.C. Wainwright maintains a neutral rating on Lyell, indicating the need for further updates before adopting a more positive outlook on the company's prospects.
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