Drug development company Aeterna Zentaris (NASDAQ:AEZS), specialized in oncology and endocrine, has made significant advancements in areas of unmet medical needs. But since its therapeutic and diagnostic products are still in their clinical and preclinical development stages, commercialization could take a long time. Additionally, given the concerns related to the company’s Nasdaq listing compliance notice and its shaky financials, is it worth betting on the stock at the current price level? Let’s find out.Specialty biopharmaceutical company Aeterna Zentaris Inc. (AEZS) is focused on developing and commercializing therapeutics and diagnostic tests. The company’s lead product Macrilen has potential uses in both endocrinology and oncology indications. In addition, it has a license agreement with Julius-Maximilians-University Wuerzburg for developing an oral prophylactic bacterial vaccine against COVID-19 disease.
AEZS' shares have surged 44.2% year-to-date, fueled by the company’s efforts to advance the development of its AIM Biologicals pre-clinical program. But the stock plummeted 15.7% over the past month and 30.3% over the past three months, reflecting investor concerns over its non-compliance with the Nasdaq listing rules and fears of potential delisting.
Closing yesterday’s session at $0.61, the stock is trading 83.1% below its 52-week high of $3.62. The company’s underwhelming financials could cause its shares to witness a pullback soon. Moreover, its potential orally active COVID-19 vaccine is still in its preclinical development planning stage. So, the revenue-generating prospects from the drug remain uncertain.