BOULDER — Clovis Oncology Inc. (Nasdaq: CLVS), which filed for Chapter 11 bankruptcy protection Dec. 11, has received a delisting notice from Nasdaq because of the filing.
Clovis reported the delisting in a filing Tuesday with the U.S. Securities and Exchange Commission.
“In the Delisting Notice, the staff of Nasdaq referenced concerns about the Company’s ability to sustain compliance with all requirements for continued listing on Nasdaq and public interest concerns related to the Bankruptcy Petitions,” according to Clovis’ SEC filing.
Clovis said that it would not appeal Nasdaq’s decision.
Trading of Clovis’ stock on Nasdaq will be suspended at the opening of business, Dec. 21, with the stock trading on the over-the-counter market that day. Clovis’ stock is expected to trade under the symbol CLVSQ.
Clovis filed for bankruptcy Sunday in the U.S. Bankruptcy Court for the District of Delaware, where the company is domiciled. The company listed assets of $319 million and debts of $754.5 million.
Clovis reported on Dec. 1 to the SEC that it had defaulted on a loan and that it intended to file for bankruptcy protection. The company has struggled in recent months to market its only approved drug, Rubraca, which is used in the treatment of ovarian cancer, according to industry disclosures.
The company stated in its most-recent quarterly report that it “will not have sufficient liquidity to maintain our operations beyond January 2023,” and that it had reduced its U.S. workforce by 115 employees on Nov. 7.
Clovis signed a stalking-horse agreement with Novartis Innovative Therapies Ag prior to filing bankruptcy that would see it sell, subject to the highest bid, the drug FAP-2286. Novartis agreed to pay $50 million up front and would pay an additional $630.75 million if the drug receives regulatory approval. The deal is subject to bankruptcy court approval and the potential for higher bids from other parties.
Clovis has an accumulated deficit of more than $3 billion, meaning that it has accumulated more losses than profits since its inception.