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OpGen, a biotech company based in Rockville, Maryland, faces a delisting threat from the Nasdaq stock exchange due to its failure to meet the exchange’s minimum bid price requirement. The company’s stock has been trading below $1 per share for more than 30 consecutive business days, violating Nasdaq’s listing rules.
OpGen, which develops molecular diagnostics and bioinformatics products, has struggled financially in recent years. The company reported a net loss of $22.5 million in 2021, up from $16.8 million in 2020. The company’s stock price has also been volatile, with shares trading as high as $3.55 in 2021 before dropping to less than $1 in early 2022.
In response to the delisting threat, OpGen has proposed a reverse stock split, reducing the number of outstanding shares and increasing the price per share. The company’s board of directors has approved the proposal, which will be put to a shareholder vote in the coming weeks.
If the reverse stock split is approved, OpGen will have six months to regain compliance with Nasdaq’s minimum bid price requirement. If the company cannot do so, it could face delisting from the exchange.
OpGen’s Future Plans
Despite its financial struggles, OpGen has continued pursuing new technologies and partnerships in molecular diagnostics. In June 2023, the company launched next-generation sequencing services in the US through its subsidiary Ares Genetics (source: MarketScreener). The benefits help identify and track bacterial infections, including those caused by drug-resistant “superbugs.”
OpGen has also been working to expand its presence in international markets. In 2022, the company announced a partnership with the Chinese biotech firm BGI Group to develop diagnostic products for the Chinese market (source: BioWorld). The partnership will focus on developing products to identify and