Celldex Therapeutics Plunges 16.74% on Drug Development Halt

On August 20, 2025, Celldex Therapeutics shares dropped 16.74% in pre-market trading. The decline was triggered by the company's decision to halt the development of barzolvolimab for eosinophilic esophagitis, a move that raised concerns among investors about the company's pipeline and future prospects.

Celldex Therapeutics has been facing challenges in maintaining its stock price above the minimum bid price required by Nasdaq. The company has implemented several reverse stock splits in the past to comply with Nasdaq's listing requirements. The most recent reverse stock split was a 1-for-250 split on August 4, 2025. Despite these efforts, the company's stock price has continued to fall, and it remains at risk of being delisted if it fails to maintain the minimum bid price for 30 consecutive business days.

In response to these challenges, Celldex Therapeutics has proposed a new reverse stock split, with a ratio between 1-for-2 to 1-for-250, to be determined by the company's board of directors. The proposed split aims to increase the per-share market price of the company's common stock and improve its liquidity. However, the effectiveness of this measure remains uncertain, as the market price of the stock will continue to be influenced by various factors unrelated to the number of shares outstanding.