ObsEva (NASDAQ:OBSV) is trending on social media, and OBSV stock is tumbling 36% to 10.85 cents. The Swiss biopharmaceutical company announced that it would undertake a major reorganization to preserve its remaining funds, noting that it “is expecting to be delisted from Nasdaq, and intends to deregister from the US Securities and Exchange Commission”
ObsEva reported that it would concentrate its efforts on developing its nolasiban drug candidate. Nolasiban increases the chances that women’s in-vitro fertilization treatments will be successful.
OBSV stock peaked in June 2022 at $2.07.
More About ObsEva’s Reorganization
The drug maker stated that it would lay off a number of its U.S.-based executives, eliminate all of its operations outside of Switzerland, and pay off its convertible debt.
ObsEva noted that its stock would continue to trade in Switzerland. However, it is unclear if the company’s shares will trade on an American over-the-counter exchange after its delisting.
Meanwhile, the company’s chair, Annette Clancy, and four other members of its board will step down from their roles. Its CEO, Brian O’Callaghan, left the firm yesterday. Its current CFO, Will Brown, was appointed interim CEO and will also continue serving as CFO. Further, ObsEva’s founder, Dr. Ernest Loumaye, will become its new chair.
Additional Information About Nolasiban
According to ObsEva, the drug has “the potential to decrease contractions, improve uterine blood flow and enhance the receptivity of the endometrium to embryo implantation.” According to the company, in a Phase 3 trial, the drug achieved the firm’s main goal. “Ongoing pregnancy rates” came in at 35.6% for the patients who took nolasiban and 28.5% for those who received a placebo.
In a group of patients who received the drug on the fifth day after implantation, 45.9% of women taking the drug became pregnant, versus 34.7% of those who received a placebo.
On the date of publication, Larry Ramer did not hold (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.
