Updated from 2:28 p.m. EDT
continued to slip Friday, one day after the company said it had been informed by
that it could face delisting. Nasdaq said it was acting because VaxGen didn't promptly file a quarterly financial report with the
Securities and Exchange Commission
The Brisbane, Calif. biotech company's shares lost 13 cents, or 0.9%, to $14.16, after being down more than 5% earlier, following an 8.6% decline Thursday.
VaxGen said Thursday that it was told its stock could be delisted by May 27 unless the company acted before the deadline to file its first quarter 10-Q or request a meeting with Nasdaq to explain the late filing.
VaxGen has requested the meeting, and a decision on delisting will be delayed pending a Nasdaq review. Meanwhile, VaxGen's stock symbol has been changed to VXGNE from VXGN to reflect its status.
VaxGen, which is working on vaccines to prevent anthrax and smallpox, disclosed earlier this week that it had delayed filing its 10-Q report for the three months ended March 31 for a second time while it reviews its accounting of revenue from certain government contracts. If this revenue recognition policy is changed, VaxGen will restate its financial reports for the fourth quarter of 2002, the 2002 fiscal year and the 2003 fiscal year. The company said it will file its first quarter 10-Q report "as soon as possible once the revenue recognition policy is completed."