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Outlook Therapeutics announces 1-for-20 reverse stock split

EditorIsmeta Mujdragic
Published 03/12/2024, 08:30 AM
© Reuters.
OTLK
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ISELIN, N.J. - Outlook Therapeutics, Inc. (NASDAQ:OTLK), a biopharmaceutical company, announced a 1-for-20 reverse stock split of its common stock, set to take effect on March 14, 2024. The move is aimed at regaining compliance with Nasdaq's minimum bid price requirement. Post-split, the total authorized shares of common stock will be reduced to 60 million.

The reverse split will proportionately adjust outstanding stock options and equity incentive plans, with the number of issued and outstanding shares decreasing from approximately 260.3 million to about 13 million. No fractional shares will be issued; instead, shareholders will receive a cash payment for fractions. The company's ticker symbol will remain OTLK, with a new CUSIP number.

Outlook Therapeutics is focused on securing FDA approval for its ophthalmic formulation of bevacizumab, intended for retinal disease treatments. If approved, the product, ONS-5010/LYTENAVA™, would be the first FDA-sanctioned ophthalmic bevacizumab for retinal indications like wet AMD (NASDAQ:AMD), DME, and BRVO. The company has entered a strategic commercialization agreement with Cencora for distribution and other services in the U.S.

This article is based on a press release statement from Outlook Therapeutics, Inc.

InvestingPro Insights

As Outlook Therapeutics, Inc. (NASDAQ:OTLK) navigates through a strategic reverse stock split, investors are closely tracking the company's financial metrics and market performance. According to real-time data from InvestingPro, the company's Market Cap stands at $101.73 million. Despite the challenges, there's been a significant 79.72% price increase over the last six months, which may catch the eye of growth-focused investors.

InvestingPro Tips highlight some concerns, such as the company's weak gross profit margins and the fact that short-term obligations exceed liquid assets. Additionally, analysts are not expecting the company to be profitable this year, which is reflected in the negative P/E Ratio of -1.96. These insights suggest that while the reverse stock split is aimed at maintaining Nasdaq compliance, the company faces underlying financial challenges.

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Outlook Therapeutics' next earnings date is set for May 15, 2024, which will be a pivotal moment for investors to assess the company's financial health and future prospects. For those seeking more in-depth analysis, there are 6 additional InvestingPro Tips available at https://www.investing.com/pro/OTLK, which could provide further guidance on the stock's potential. Moreover, interested investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a comprehensive view of the company's financial standing and market potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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