Rallybio shares surge 10.83% premarket as 1-for-8 reverse split aims to meet Nasdaq's $1 minimum price requirement.

Rallybio surged 10.83% in premarket trading following its announcement of a reverse stock split to meet Nasdaq’s minimum price requirement. The company, facing potential delisting due to prolonged sub-$1 pricing, will consolidate shares at a 1-to-8 ratio, effective February 6, 2026. This move aims to elevate the share price above the Nasdaq Capital Market’s threshold, addressing regulatory concerns and preserving market access for capital-raising. While reverse splits often signal distress, investors may view this action as a necessary technical fix to avoid delisting, stabilizing short-term sentiment. The adjustment, which maintains shareholder ownership percentages and includes cash compensation for fractional shares, aligns with the company’s focus on advancing its pipeline of therapies for rare diseases.