NEW YORK, Nov. 4 - The Nasdaq exchange will delist Pharsight this Friday for failing to keep its share price above $1 for 120 days, the company said today.
Shares in Pharsight last traded at or above $1 on Aug. 21, according to the Nasdaq. Company officials, which will not challenge the Nasdaq decision, were not immediately available for comment.
Struggling for breathing room, Pharsight in mid-July kicked off a company-wide restructuring plan designed to save as much as $3 million in annual operating costs. The plan called for the creation of three distinct business units and a 15-percent reduction in headcount.
One week later, the company appeared to have gained some traction. Fiscal first-quarter net loss narrowed after expenses were trimmed by $2.6 million, including a $500,000 cut in R&D spending, atop a 26-percent jump in total revenue.
But over the ensuing three months, despite securing $4.4 million in the second round of a two-round private-equity tranche, Pharsight saw its luck start to fizzle. Revenue for the period ended Sept. 30 fell to $3.3 million from $3.7 million one year ago, and R&D spending nose-dived to just $900,000 from $1.7 million year over year, Pharsight said.
The company, which held around $13.4 million in cash, cash equivalents, and short-term investments as of Sept. 30, now said it wouldn't break even by next summer. Pharsight will "acieve this milestone at a later date," said Michael Perry, president and CEO.