VaxGen to Be Delisted as It Restates Results

VaxGen Inc., which is developing an experimental anthrax vaccine for the U.S. government, said Friday that it would be delisted from Nasdaq beginning Monday.

Nasdaq is taking the action because the company has failed to file its two quarterly income reports this year. The company said it was dramatically revamping how it recognizes revenue and would restate its earnings dating back to 2002.

Shares of the Brisbane, Calif.-based company fell 36%, or $3.88 a share, to $6.97 on Nasdaq.

Company spokeswoman Kesinee Yip said the company had not been accused of any malfeasance. She said the restatements were the result of the firm’s outside auditor and new chief financial officer’s objecting to the amount of revenue that the company had deferred and didn’t immediately recognize as revenue.

The company is expected to post higher revenue and narrower losses for the two years of financial reports it is restating, Yip said.

Yip also said the company would complete the restatements and file current financial reports by October.