CAMBRIDGE, Mass. (AP) -- Zalicus, after a reverse stock split that removed millions of shares from the market, said Tuesday that it was back in compliance with the Nasdaq's $1 minimum stock-price rule.
After trading below the dollar threshold for much of the past year, shares of the pain treatment company jumped this month after it converted every six publicly traded shares into a single share, reducing the total outstanding share count to about 24.6 million, from 147.5 million.
The stock slipped below $1 in September 2012 after Zalicus retreated from efforts to develop a rheumatoid arthritis drug. On Oct. 2, when the reverse stock split was announced, shares hit a 52-week high.
Zalicus shares had to trade above $1 for 10 days before Oct. 21, or the company risked being removed from the Nasdaq exchange, a spokeswoman said.
The Cambridge, Mass., company is testing a couple potential pain treatments labeled Z160 and Z944 and has entered into collaborations with bigger drug developers on other potential drugs. It licensed the eye allergy treatment Prednisporin to a division of French pharmaceutical giant Sanofi, which has moved the treatment into mid-stage clinical testing.
The company's only approved product is Exalgo, a treatment for moderate-to-severe chronic pain. Exalgo is marketed by Covidien PLC spinoff Mallinckrodt, and Zalicus receives royalty payments.
Shares of Zalicus Inc. closed at $4.84 on Monday and were flat in early Tuesday trading while the Nasdaq exchange slipped less than 1 percent.