Danbury insulin-products maker Biodel Inc. completed a reverse one-for-four stock split, necessary to retain its Nasdaq listing, authorities say.
Meantime, Biodel signed a licensing pact with a California biotech for a hormone formulation crucial to keeping its development timetable for its fast-acting anti-diabetes treatment.
Biodel said its common stock began trading Tuesday on a split-adjusted basis on the Nasdaq Capital Market. Its shares were down 39 cents, or 12 percent, to $2.87 in mid-morning trading.
The reverse split effectively raised Biodel's trading price above the $1-a-share minimum necessary to comply with Nasdaq listing requirements.
The company not long ago aired its intention to consider all options, including the split, to stay. Shareholders voted in March to authorize the board to proceed with the split that cut its common shares outstanding to 25 million.
Its stock continues to trade under the symbol BIOD.
No fractional shares will be issued as a result of the reverse split, officials said. Holders who would otherwise have gotten fractional shares will get cash instead.
Continental Stock Transfer & Trust Co. is the exchange agent split.
Separately, Biodel recently announced an agreement with Aegis Therapeutics, of San Diego, for Aegis' ProTek and Intravail technologies for developing and commercializing synthetic versions of the hormone glucagon.
The pancreas secretes glucagon to raise blood glucose levels, the opposite effect of the hormone insulin in the body.
Biodel's ultimate goal is to seek federal approval and commercialize its glucagon product that would serve as a rescue treatment for diabetes patients who experience hypoglycemia, or low blood sugar.