OBSV - ObsEva to delist from Nasdaq in companywide shake up

Swiss biotech ObsEva SA ( NASDAQ: OBSV ) lost ~16% pre-market Friday after announcing a major reorganization drive, including plans to delist from the Nasdaq stock exchange due to its failure to meet the minimum bid price requirement.

The company focused on female reproductive health also said that the Nasdaq delisting is expected to reduce its general and administrative expenses.

ObsEva ( OBSV ) also announced the resignation of Chief Executive Officer Brian O'Callaghan effective Feb. 23, with current Chief Financial Officer Will Brown taking over as interim CEO in addition to his CFO position.

An executive search is underway to find a permanent CEO to be based in Geneva. ObsEva ( OBSV ) also plans to downsize its US-based executive team as its operations consolidate in Switzerland, where it intends to maintain its SIX Swiss Exchange listing under the ticker symbol OBSN.

The company expects to submit proposals to reduce its board of directors at the next Annual General Meeting as ObsEva's ( OBSV ) Chairwoman, Annette Clancy, and several other board members have decided not to stand for reelection.

The company founder, Dr. Ernest Loumaye, is expected to take up the role of board chairman.

With the reorganization drive, the company intends to save costs and increase focus on its out-licensed program and the development of oral oxytocin receptor agonist nolasiban.

"We intend to initiate a Phase 1b trial for nolasiban in the second half of 2023 as we remain committed to our mandate of improving women's health," board's Chairwoman Annette Clancy said.

On Sep. 12, the company received the Nasdaq noncompliance notice concerning its failure to satisfy the minimum bid price requirement.

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