Friday’s Worst Performers: Ra Medical, Navidea Biopharmaceuticals, & Vanda Pharmaceuticals

Ra Medical Systems prices $12 million underwritten offering 

Ra Medical Systems Inc. (NYSE: RMED) continued to bleed, shedding 51.7% on Friday to a new 52 week low and bringing losses in a week to 64.01%. Over the past month, the stock has lost almost 76.17% of its value to its current levels at $0.36. The stock tanked after the company announced its underwritten public offering pricing for total proceeds of around $12 million before subtracting commissions, discounts, and offering costs.

The company will issues around 9.535 million units priced at $0.5 per unit. Each unit comprises a common share and a common share purchase warrant with the warrants exercisable at $0.5 and will expire on the first anniversary from the date of closing (Series A Warrant) equally, the units can be exercisable at $0.5 for one common share and expires on the 7th anniversary from the day of closing (Series B Warrant). In addition, Ra Medical also issued 14.468 pre-funded units at $0.4999 for each unit. Each unit consists of one pre-funded warrant purchase of a common share exercisable at $0.0001 on the 12th-anniversary closing. 

Navidea receives NYSE American delisting notice. 

Navidea Biopharmaceuticals Inc. (NYSEAMERICAN: NAVB) shares dropped 7.29% to a new 52-week low on Friday to $0.85. The stock has lost 28.17% in a week, and it is down 32.08% in a month. The stock tanked after the company announced that it had received a notice of delisting from NYSE American LLC. The notification indicated that the company wasn’t in compliance with some NYSE American continued listing conditions. Notably, the Deficiency Letter indicated that the company was not compliant with NYSE American Company Guide’s Section 1003(a)(iii).

The company is supposed to submit a plan regarding regaining compliance by February 27, 2022. Unfortunately, if the plan is not accepted or if Navidea fails to submit the plan by then, the delisting of its shares will begin. 

Also, the company announced a settlement regarding the lawsuit with Platinum Management (NY) LLC’s affiliate Platinum-Montaur Life Sciences. Platinum-Montour had initially demanded around $1.9 million in damages and interest as part of the litigation. The parties reached a settlement agreement on January 13, 2022. 

Tradipitant study didn’t meet the primary endpoint 

Vanda Pharmaceuticals Inc. (NASDAQ: VNDA) is down 18.61% in a week, and over the past month, the stock has lost 21.78%. The company’s shares lost almost 20% on Friday after the company released the third phase clinical findings of a study evaluating the safety and efficacy of tradipitant in the treatment of gastroparesis symptoms that didn’t meet the primary endpoint. The primary endpoint was determining the difference between tradipitant and placebo on nausea severity change from baseline through week 12. 

However, both arms demonstrated considerable improvements in nausea from baseline and other major gastroparesis symptoms. The company indicated that the initial analysis had shown possible cofounders that masked the drug’s beneficial impact observed on the second phase tradipitant study. 

Vanda is planning to continue the analysis of the study’s findings and get ready for peer review journals submissions and to regulatory authorities. The FDA has put a partial hold on tradipitant clinical protocols that are longer than 12 weeks.