BioSante moving over to Nasdaq

Drug maker BioSante Pharmaceuticals Inc. will soon move to the Nasdaq Global Market from the American Stock Exchange.

Shares of the Lincolnshire-based company are expected to begin trading on the Nasdaq in mid-November.

Chief Financial Officer Phillip Donenberg said BioSante, a company that focuses primarily on topical hormone therapy products, decided to switch markets due to the cheaper cost, decreased time and increased efficiency for traders in executing electronic trading on Nasdaq.

"It's a favorable sign for the company and it clearly indicates the broadening of the shareholder base and overall increase in investor interest," analyst Ram Selvaraju said from New York-based investment banking and brokerage firm Rodman Renshaw LLC.

With more than 150 biotechnology companies listed on the Nasdaq, Donenberg said the market seemed like a more appropriate place for the company.

Analyst Kevin DeGeeter, with New York-based investment bank and brokerage Oppenheimer Co., said: "When you look at biotechnology and drug developing companies, generally they are moderate to low quality and smaller companies on the AMEX. So the question becomes what kind of peer group do you want to be surrounded by? There's a better peer group on Nasdaq."

Donenberg said all of the tangible benefits complement the intangible benefit of trading on the Nasdaq: perception.

"The perception of a company trading on the Nasdaq as opposed to trading on the AMEX is that the company is more credible. The investors also believe the company to be more credible," Donenberg said.

BioSante hopes the move to the largest U.S. electronic stock market will boost investor optimism and increase its stock value.

Companies interested in trading on the Nasdaq market can apply for the listing after their stock has remained above $5 for 90 consecutive days.

This was the first approach made by BioSante for a Nasdaq listing. The application fee and the new company listing fee were waived because BioSante met corporate governance standards while on the AMEX. The company is currently going through required regulatory processes associated with the transfer.