RedHill Biopharma Faces Nasdaq Compliance Challenge, Considering Strategies to Restore Listing

RedHill Biopharma (RDHL) has been notified by Nasdaq about its non-compliance with Listing Rule 5550 due to a stockholders' deficit of $4,683,000. The company is exploring strategies to address the deficit and restore compliance to preserve its listing on the Nasdaq Capital Market. One-year price targets from analysts suggest an average target price of $19,000.00 with an upside of 859,628.51%. The estimated GF Value for RDHL in one year is $1.63, indicating a downside of 26.24% from the current price.

RedHill Biopharma Ltd. (Nasdaq: RDHL), a specialty biopharmaceutical company, has been notified by Nasdaq about its non-compliance with Listing Rule 5550 due to a stockholders' deficit of $4,683,000. The company is currently exploring strategies to address the deficit and restore compliance to preserve its listing on the Nasdaq Capital Market.

The Nasdaq Listing Rule 5550(b)(1) requires companies listed on the Nasdaq Capital Market to maintain a minimum of $2,500,000 in stockholders' equity. RedHill's latest Annual Report on Form 20-F for the fiscal year ended December 31, 2024, revealed a stockholders' deficit, making the company non-compliant with the rule. The notification from Nasdaq, dated April 15, 2025, does not immediately affect the company's listing or business operations. However, RedHill has 45 calendar days to submit a plan to regain compliance, with the possibility of an extension of up to 180 calendar days if the plan is accepted [1].

The company is looking into various options to regain compliance and maintain its continued listing on the Nasdaq Capital Market. One-year price targets from analysts suggest an average target price of $19,000.00, with an upside of 859,628.51%. The estimated GF Value for RDHL in one year is $1.63, indicating a downside of 26.24% from the current price [2].

RedHill Biopharma is focused on the development and commercialization of drugs for gastrointestinal diseases, infectious diseases, and oncology. Its key clinical late-stage development programs include opaganib, RHB-204, RHB-104, RHB-107, and RHB-102, each with varying stages of development and potential market applications. The company's FDA-approved gastrointestinal drug Talicia is already in use for treating Helicobacter pylori (H. pylori) infection in adults.

The notification from Nasdaq highlights the importance of maintaining financial health for public companies. RedHill Biopharma must navigate this challenge while continuing its research and development efforts to bring new treatments to market.

References:
[1] https://www.marketscreener.com/quote/stock/REDHILL-BIOPHARMA-LTD-12243230/news/RedHill-Biopharma-Receives-Nasdaq-Notification-Regarding-Minimum-Stockholders-Equity-Deficiency-49651152/
[2] Market data and analyst estimates, as of April 18, 2025.