Orphazyme (NASDAQ:ORPH) is falling after the drugmaker announced today that it would delist its American Depositary Shares. The company said that it had started the delisting process and noted that it will take effect on March 31. In early trading, ORPH stock was sinking 5% to 81 cents.
So what else do you need to know?
This delisting decision comes as Orphazyme makes a few other key moves.
In another announcement today, the Denmark-based firm disclosed that it is withdrawing its application for an approval by the European Medicines Agency (EMA) of its drug, arimoclomol, which is designed to treat Niemann-Pick disease Type C. For those unfamiliar, the EMA is the main pharmaceutical regulator in the European Union. Niemann-Pick disease Type C is “a rare progressive genetic disorder characterized by an inability of the body to transport cholesterol and other fatty substances (lipids) inside of cells.”
What Happened With ORPH Stock
Importantly, investors should note that these two announcements follow other stumbles from Orphazyme.
On Feb. 23, the company disclosed that the committee of the EMA responsible for approving drugs had preliminarily voted against arimoclomol. The company stated that it did not expect the committee’s position to change when it votes formally on the drug.
Then, on March 10, Orphazyme announced that it would undergo in an in-court restructuring process. Orphazyme explained that:
“The purpose of the restructuring process is to explore whether a basis can be established which allows for all or part of the Company’s operations to continue, including a basis for injecting further capital, and/or a basis for a sale of all or parts of the Company’s assets. At this stage it is uncertain whether a solution can be found, and a further update will be provided at the appropriate time.”
In conjunction with its restructuring decision, Orphazyme stated that it would lay off about 50% of its employees.
Why do investors care? Orphazyme was popular with retail traders last summer, and rocketed higher again on March 17.
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On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.