Biostage Inc. (NASDAQ:BSTG) Delisted As Financial Woes Deepen

Biostage Inc. (NASDAQ:BSTG)

Biostage Inc. (NASDAQ:BSTG) shares fell 52.4% after the NASDAQ Stock Market LLC said it will delist the stock for failing to meet the minimum requirements needed for continued listing.  Following delisting, the stock is to move to the OTCQB Marketplace, a transition that appears to have rattled investors.

Biostage Delisting

Delisting from the NASDAQ does not come as a surprise as Biostage has struggled to rise above $1 a share for the entire year. The stock has shed more than 80% in market value in 2017 and continues to trade in a strong downtrend.

Biostage first received warning of its failure to meet listing requirements late last year when the NASDAQ Market first took note of the company’s stockholding equity when it dropped below the required $2.5 million level. Things have gotten worse ever since, the stock having slumped from the $0.90 to current lows of $0.10 a share.

The NASDAQ Hearings Panel accepted the company’s request for continued listing on the exchange, subject to a number of conditions. However, failure of the company to meet some of the conditions over the past 180 days left the exchange with no other option than to proceed with the delisting.

Capital Woes

Delisting from NASDAQ is not the only problem that Biostage Inc. (NASDAQ:BSTG) is grappling with. The biotechnology company is facing significant capital issues as its financial obligations continue to exceed cash in hand.  Financial woes have been exacerbated by Pecos LLC’s decision to exercise rights it owns under a Securities Purchase agreement agreed in August.

Biostage Inc. (NASDAQ:BSTG) entered into a Securities Purchase Agreement with Pecos LLC pursuant to which the company was to purchase preferred stock and warrants. The transaction could have generated $3 million for the embattled biotechnology company, an amount that could have helped offset some of the financial challenges the biotechnology company is facing.

“The Company believes that it is not, and was not, in breach of the Purchase Agreement, and that Pecos’ notice was unjustified and without any legal merit or factual basis, and was delivered as a result of Pecos being either unwilling or unable to deliver the Purchase Price,” Biostage in a statement.

In its defense, Pecos LLC has accused Biostage Inc. (NASDAQ:BSTG) of a breach of its obligations pursuant to the agreement. Reports indicate that the firm was pushing for additional conditions that were not included in the first Purchase Agreement.  One of the conditions called for the appointment of Saverio La Francesca as the co-Chief Executive Officer.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Biostage Inc (NASDAQ:BSTG) Stock Drops on Financial Results

Biostage Inc (NASDAQ:BSTG)

Biostage Inc (NASDAQ:BSTG) stock dropped after the biotechnology company posted a second quarter financial report that disappointed investors. BSTG stock ended last Friday at $0.51 and closed at $0.44 for a 14% loss. Volume was more than double the listed average.

Biostage Inc (NASDAQ:BSTG)
One month stock chart for BSTG

Holliston, MA-based Biostage Inc (NASDAQ:BSTG) reported a Q2 2017 net loss of approximately (-$3.6) million, or a per share net loss of (-$0.10). In Q2 2016, Biostage reported a net loss of approximately (-$2.7) million, or (-$0.17) per share. The $0.9 million increase is largely due to increased R&D spending on outsourced preclinical studies and $1.0 million in employee expenses.

Holliston, MA-based Biostage Inc (NASDAQ:BSTG) is a biotechnology company that seeks to develop bioengineered organ implants based on the Company’s proprietary Cellframe™ technology. Cellframe technology combines a proprietary biocompatible scaffold with the patient’s own stem cells to create Cellspan organ implants, essentially re-growing the patient’s own organs. Cellspan implants are being developed to treat life-threatening conditions of the esophagus, bronchus, or trachea with the hope of dramatically improving a petient’s treatment outcomes. Based on preclinical data, Biostage selected life-threatening conditions of the esophagus as the initial clinical application of its technology.

On May 4, 2017, the Cellspan Esophageal Implant was surgically implanted into a 75-year old male with a life-threatening cancerous mass in his chest. The surgery was required to address the tumor’s encroachment on the patient’s lung, heart, and esophagus. The portion of the esophagus affected by the cancer was removed and the Cellspan Esophageal Implant was utilized to reconstruct the esophagus. The patient is now alive three months after surgery. Biostage believes that the Cellspan Esophageal Implant has performed as designed.

While BSTG shares are down YTD by over 42%, they have been in an uptrend since the end of June when the above procedure was made public. Accordingly, BSTG shares are up over 60% for the quarter and more than double their 52-week low of $0.22. The analyst’s consensus target price of the stock is $3.00.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $BSTG and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Biostage Inc (NASDAQ:BSTG) Stock Reacts to Ground Breaking Procedure

Biostage Inc (NASDAQ:BSTG)

Biostage Inc (NASDAQ:BSTG) stock is up over 20%, at $0.55, after the company announced the its Cellspan Esophageal Implant product candidate was used in a patient via an FDA-approved single-use expanded access application. BSTG shares ended Friday at $0.46 and gapped up to open at $0.62 before hitting a high of $0.65. Share volume is extremely heavy. The 30-day, daily volume is listed at 777,500 but already today over 5.1 million shares have traded. Biostage stock price chart:

Biostage Inc (NASDAQ:BSTG)
Biostage stock price chart

Holliston, MA-based Biostage Inc (NASDAQ:BSTG) is a biotechnology company that seeks to develop bioengineered organ implants based on the Company’s proprietary Cellframe™ technology. Cellframe technology combines a proprietary biocompatible scaffold with the patient’s own stem cells to create Cellspan organ implants, essentially re-growing the patient’s own organs. Cellspan implants are being developed to treat life-threatening conditions of the esophagus, bronchus, or trachea with the hope of dramatically improving a petient’s treatment outcomes. Based on preclinical data, Biostage selected life-threatening conditions of the esophagus as the initial clinical application of its technology.

On May 4, 2017, the Cellspan Esophageal Implant was surgically implanted into a 75-year old male with a life-threatening cancerous mass in his chest. The surgery was required to address the tumor’s encroachment on the patient’s lung, heart, and esophagus. The portion of the esophagus affected by the cancer was removed and the Cellspan Esophageal Implant was utilized to reconstruct the esophagus.  The patient is now alive three months after surgery. Biostage believes that the Cellspan Esophageal Implant has performed as designed.

Within a collaborative agreement between Biostage and The University of Texas Health Science Center at Houston (UTHealth), the patient’s own stem cells were processed, seeded, and grown onto the scaffold at the Cellular Therapy Core of the Program in Children’s Regenerative Medicine at UTHealth, prior to release for transport to the institution carrying out the surgery.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $BSTG and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Biostage Inc (NASDAQ:BSTG) Released An Update Of Corporate And Clinical Progress

Biostage Inc (NASDAQ:BSTG)

Biostage Inc (NASDAQ:BSTG) a biotechnology firm advancing bioengineered organ implants to cure cancers and other life-threatening ailments of the bronchus, trachea and esophagus released financial report for the quarter and year closed December 31, 2016. The firm also released an update to its clinical and corporate progress and reviewed its projected near-term milestones.

The update

Biostage Inc (NASDAQ:BSTG)  closed an $8 million public offering in Q4 2016. It obtained Orphan Drug Designation from the FDA for its Cellspan™ Esophageal Implant. The company filed a peer-reviewed document on esophageal regeneration data for publication with Mayo Clinic. It even advanced collaborative preclinical trials with Connecticut Children’s Medical Center.

Next it carried out additional preclinical trials with Mayo Clinic on bronchus and esophagus program. The company has built base requirements for Good Laboratory Practice preclinical trials of esophageal implant with regards to FDA requirements for IND submission. It focused on achieving continued improvements on regulatory, clinical infrastructure and internal quality in preparation of progression into human clinical trials this year.

Jim McGorry, the CEO of Biostage Inc (NASDAQ:BSTG), reported that they are delighted with the development they have recorded over the course of FY2016, with the continued repetition of their preclinical report, and the building of their operational foundation. It instills them with great confidence leading up to its imminent IND submission for their flagship program.

The CEO added that they remain thoroughly focused on progressing their Cellspan implants and entering into their first-in-human clinical trial. The underway GLP trials, intended to mimic their planned Phase 1 trial, continue to boast a clear and promising pattern of regeneration. They look forward to releasing updates on the development of their studies, the submission of their IND in Q3 2017 as well as initiating their Phase 1 trial before year end.

Following the firm’s pre-IND meeting with the U.S. FDA in October 2016, the firm obtained greater clarity and valuable feedback with respect to the U.S. FDA’s expectations and company’s requirements for a successful submission of its IND for the planned esophageal implant program.

Biostage Inc (NASDAQ:BSTG) is dedicated to communicating frequent  updates of its IND supported trials, including a developmental update at the AATS in May. Are shares of firm all set to make a move?  Increased interest from bargain investors and recent volatility have put the stock on numerous investors’ watch list of late. The stock is hovering around $0.355 after closing up over 1% in the last trading session.

3/13/2017
Ticker Symbol BSTG
Last Price a/o 3:21 PM EST  $0.35
Average Volume  1.33M
Market Cap (mlns)  12.99M
Shares Outstanding (mlns) 36.62M
Share Float (mlns) 34.16M
Inside Ownership
Short Float 2.69%
Short Interest Ratio 0.69
Quarterly Return -60.74%
YTD Return -60.15%
Year Return -78.37%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.