Wednesday, March 26, 2008

Vion gets Nasdaq notice about noncompliance

Vion Pharmaceuticals Inc. executives say that the drug company has been given notice by the Nasdaq that it is out of compliance with Nasdaq listing rules.

Nasdaq staff is reviewing whether Vion (Nasdaq: VION) is eligible for continued listing on the market, and the company has been asked to provide a specific plan to reach compliance with all listing requirements by April 15, 2008.

If Nasdaq officials don't think the plan will achieve the desired compliance, Vion may be notified that its securities will be delisted. Should that occur, the company may appeal the decision to Nasdaq.

In May 2007, Vion Pharmaceuticals suspended a Phase 3 trial for blood cancer drug Cloretazine on the advice of an independent safety panel. The firm was testing Cloretazine in patients with relapsed leukemia. The trial was suspended after the independent panel reviewed interim data from 210 patients who took the experimental drug, and found that "any remission could be compromised by the observed on-study mortality to date," the company reported.

For 2007, Vion reported a loss of $34.3 million on $70,000 in revenue.