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On Heels of Massive Layoffs, Mela Sciences Faces Potential Delisting

Qmed Staff

September 4, 2013

1 Min Read
On Heels of Massive Layoffs, Mela Sciences Faces Potential Delisting

Mela Sciences (Irvington, NY) faces potential delisting from the NASDAQ Stock Market. Unless the company is able to push itself above a trading price of $1 per share, the company will no longer be allowed to trade on the stock exchange.

Mela manufactures diagnostic devices for skin cancer. Since the first of July this year, the company has traded below $1. Over the 2013 year, shares of the company are down 63%.

Based on current NASDAQ exchange rules, the company will have six months to boost its trading price above $1. If the company doesn't achieve this by February of 2014, it will be delisted.

Mela Sciences hasn't had a very pleasant summer. In June of this year, CEO Joseph Gulfo resigned from the company after almost a decade of service. In August, Mela sent out pink-slips to approximately one-fourth of its total staff.

In its second quarter (ending on June 30th), the company posted total sales of $144.4 million. This compares to Q2 2012 sales of $75.8 million. However, the company's 2013 Q2 resulted in a loss of $7.4 million, compared to losses of $5.5 million one year ago.

"We are prioritizing our target list of dermatologists and their practices based on their geographic location and the proper level of support our reps and field specialists can provide," noted interim CEO Robert Coradini. "This philosophy has guided the restructuring and as of today, we have realigned our field-based organization accordingly."

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