11:51 AM EDT, 10/02/2024 (MT Newswires) -- Eagle Pharmaceuticals ( EGRX ) said Wednesday in a filing that it is in default under a credit agreement, having failed to meet the reporting requirements, and is discussing the matter and related issues with the lenders.

The company said its 2023 annual report and 2024 quarterly filings have been delayed as it working to restate last year's financial statements. It also said it is seeing "one or more material weaknesses" that exist in its internal control over financial reporting, and is reviewing such matters and any other potential items for correction.

Eagle also said a review process is underway to evaluate a range of potential financing and other alternatives to strengthen its liquidity position and capital structure.

Meanwhile, the company said it has been notified by Nasdaq that trading of its common shares will be suspended beginning Thursday due to its failure to comply with the terms of the extension granted by a Nasdaq panel to regain compliance with the listing rules.

Eagle expects its common stock will be eligible for trading on the OTC Expert Market, where it said its share price and stock liquidity will likely be adversely affected.

Shares of Eagle were down more than 36% in recent trading.

Price: 2.25, Change: -1.31, Percent Change: -36.74