AEterna Zentaris (AEZS) Stock: Climbing On NASDAQ Compliance


AEterna Zentaris Inc. (NASDAQ: AEZS)

AEterna Zentaris is having an incredible day in the market today after announcing that it has regained compliance as a NASDAQ component. The stock fell dramatically when compliance issues started. However, it seems as though we’re seeing an incredible recovery. Today, we’ll take a look at the news, talk about what we’re seeing from AEZS as a result and discuss what we can expect to see from the stock moving forward.

AEZS Regains NASDAQ Listing Compliance

AEZS recently ran into problems when their bid price fell below $1.00. Under NASDAQ’s rule 5450(a)(1), all components must maintain a minimum bid price of $1.00 in order to maintain continued listing on the NASDAQ Capital Market. As a result of recent changes, AEterna Zentaris is now compliant with the rule, which allows AEZS to maintain listing on the NASDAQ Capital Market. In a statement surrounding the announcement, President and CEO of AEZS, David A. Dodd had the following to say…

We are pleased that we have been able to regain compliance with NASDAQ’s minimum bid price rule, because our NASDAQ listing is important in maintaining liquidity in the trading of our common shares.”

How The Market Reacted To The News

As investors, we’ve come to expect to see positive movement any time there is positive news released with regard to a publicly traded company. That’s exactly what we saw from AEZS as a result of this news. Currently (11:20), AEZS is trading at $7.48 per share after a gain of $0.49 or 7.01%.

What We Can Expect To See From AEZS Moving Forward

When it comes to investing, any time we see a stock climbing substantially in the market, it’s hard not to want to get in on the trends. However, it’s important to pay close attention, not just to what’s going on at the moment, but the factors that are surrounding the stock which will affect change in its value. With that said, I have a somewhat mixed opinion with regard to what we can expect to see from AEZS Moving forward.

  • The Good – AEZS is currently in the midst of two important clinical trials. It is currently working on a Phase 3 trial assessing a treatment for benign prostatic hyperplasia in which it is testing the effectiveness of Cetrotide. The company is also working on a Phase 2 trial of AEZS-108 that is looking incredibly positive in the treatment of endometrial and ovarian cancer. If either one of these trials ends in a positive way, it could act as a catalyst.

  • The Bad – Based on the non-compliance issue with NASDAQ, fears are mounting that the company may run into further compliance issues down the road. While I don’t think that these fears are warranted, they definitely could have an affect on the price of AEZS.

Overall, my opinion is positive. In the long term, we are likely to see incredibly good news from the stock. However, in the short term, investor fears may cause slight downtrends here and there.

What Do You Think?

Where do you think AEZS is headed and why? Let us know your opinion in the comments below!

[Image Courtesy of Smarter Analyst]

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