Nasdaq warns NexMed that it doesn't comply with listing requirements

By E. Janene Geiss

Philadelphia, Jan. 6 - NexMed, Inc. announced Friday that it has received a notice from Nasdaq indicating that it did not comply with the minimum $50 million market value of listed securities requirement for continued listing.

Additionally, the company does not comply with the Nasdaq rule, which requires total assets and total revenue of $50 million each for the most recently completed fiscal year or two of the last three most recently completed fiscal years, according to a company news release.

Nasdaq will provide written notice that the company's common stock will be delisted from the Nasdaq National Market at the opening of business on Jan. 31 unless the company's market value of listed securities is $50 million or more for a minimum of 10 consecutive business days during the 30-day period ended Jan. 30 or if the company's total stockholder equity is above $10 million before Jan. 30.

Should the company receive such notice, it said it plans to file a request for a hearing with the Nasdaq's Listing Qualifications Panel to appeal the Nasdaq determination.

The company has been informed that the appeal process may take up to four weeks during which time the company's stock will remain listed.

As of Dec. 29, the market value of listed securities based on current shares outstanding of 54,530,382 was $41,443,090, the company said.

To comply with the $50 million market value criteria, the company's share price would have to be $0.92 or greater for 10 consecutive days before Jan. 30.

There can be no assurance that the Nasdaq Listing Qualifications Panel will decide to allow the company to remain listed or that any company actions to attempt to comply with alternative listing criteria will prevent the delisting of its stock, the company said.

NexMed, a Robbinsville, N.J., drug developer, offers large pharmaceutical companies the opportunity to save considerably on research and development costs, develop new patient-friendly transdermal products and extend patent lifespans and brand equity through participation in early stage licensing and development partnerships.

NexMed said it has a host of medicines in development, such as treatments for nail fungus, sexual disorders and more, all based on its proprietary NexACT drug-delivery technology.

Current partners include Novartis International Pharmaceutical for a topical anti-fungal nail treatment and Schering AG for Alprox-TD, a topical treatment for erectile dysfunction.

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