After changing its name from Tivic Health Systems (NASDAQ: TIVC) to Valion Bio (NASDAQ: VBIO), effective at market open today, the company’s stock price declined 28% to close at $1.01, after trading as low as $0.865 earlier in the trading session.
According to Tivic’s press release announcing the corporate name and symbol changes, the rebranding reflects the company’s shift from a medical device company to a late-stage biopharmaceutical firm with a government-backed asset and potential for multiple revenue streams.
Valion is advancing its lead drug candidate, Entolimod, as a medical countermeasure for acute radiation syndrome. It has FDA Fast Track and Orphan Drug designations and is being developed under the FDA’s Animal Rule. The company is working with BARDA, DTRA, NIAID and other government agencies to seek inclusion in the U.S. Strategic National Stockpile. A procurement contract, if secured, could represent a non-dilutive revenue opportunity potentially reaching nine figures.
In a statement on April 23rd, Michael K. Handley, CEO of Valion, commented, “The Valion Bio name reflects the company we have become. We have a late-stage asset with validated biology, regulatory designations, a clear government procurement pathway, and a world-class manufacturing operation under one roof. This is a different company than the one that existed 18 months ago—and the new name should make that unmistakable to every investor, partner, and government stakeholder we engage.”
Despite today’s double-digit stock decline, trading eked out an important silver lining.
On March 19th, the company received a notification letter from the Nasdaq Listing Qualifications Department notifying it that it was not in compliance with the $1.00 minimum bid price requirement for continued listing. Today’s close at $1.01 marked the stock’s tenth consecutive closing bid price above $1.00. As a result, the company may be positioned to regain compliance with Nasdaq’s minimum bid price rule, pending confirmation from Nasdaq.
