Aeterna Zentaris (NASDAQ:AEZS) dropped over 10% after executing a six-for-one reverse stock split to boost its share price and regain compliance with Nasdaq rules, in order to stay listed.
The company has had a rough go of it ever since perifosine, its etastatic colorectal cancer drug, failed to meet its endpoint in late-stage clinical trials. AEZS has almost $40MM in cash, but it's burned through $34MM over the past 12 months as it advances drugs through four mid-stage trials, and two late-stage trials, including perifosine in other cancer indications. Fool.com analyst Dave Williamson is glad that Aeterna Zentaris will remain listed, but he advises investors to hold off until the company is able to show more trial results. For Dave's full take on the story, be sure to check out the video below.
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