Synlogic Faces Nasdaq Delisting Threat Over “Public Shell” Status

Synlogic US87166L1008

Shares of biotechnology firm Synlogic are experiencing significant downward pressure following a critical notification from the Nasdaq stock exchange. The exchange has classified the company as a "public shell" and issued a delisting warning, casting a shadow over its future and driving its stock price lower.

The market's reaction to the Nasdaq's announcement was swift and negative. On December 5, Synlogic shares closed at $1.030, a notable drop from a previous level of $1.150. Trading volume for the session was 66,130 shares, which fell below the average of 102,830, indicating cautious participation from investors.

Key financial figures highlight the company's precarious position:
* The company's market capitalization has dwindled to approximately $11.82 million.
* Its price-to-earnings (P/E) ratio stands at a negative -3.88, a common characteristic for a company that is not yet profitable.

Nasdaq's Rationale and Company's Appeal

The core of the issue stems from a notice received by Synlogic from the Nasdaq Listing Qualifications department on November 26, 2025. The exchange's determination is based on several factors: a lack of revenue-generating assets, a substantial reduction in both employees and business operations since February 2024, and an absence of revenue for the first nine months of 2025. Notably, the company's research and development expenses during that period amounted to just $16,000.

In response, Synlogic has stated its intention to formally contest the classification and request a hearing before a Nasdaq panel. This appeal process will temporarily suspend any delisting action while the review is pending.

The immediate trajectory for Synlogic's stock is now heavily dependent on the outcome of this forthcoming hearing regarding its Nasdaq listing status.