PHAS - PhaseBio announces Chapter 11 filing; plans to sell lead asset

• PhaseBio Pharmaceuticals ( NASDAQ: PHAS ), a biotech focused on cardiovascular diseases, dropped ~9% pre-market Monday after the company announced plans for Chapter 11 bankruptcy and a non-binding agreement to sell its leading program, bentracimab.
• The voluntary petition filed in the U.S. Bankruptcy Court in Delaware under Chapter 11 of the Bankruptcy Code came after a thorough evaluation of all strategic options, Chief Executive Jonathan Mow noted.
• As part of the legal process, the company intends to seek authorization for an auction and sale process for the bentracimab program assets.
• Ahead of the sale, PhaseBio ( PHAS ) has entered into a non-binding agreement under which an unnamed large pharmaceutical company will submit an initial bid for bentracimab assets as the stalking horse bidder.
• Per the terms, the company is entitled to a $40M upfront payment in addition to $60M of milestone payments.
• PhaseBio ( PHAS ) has partnered with SFJ Pharmaceuticals to develop bentracimab, also known as PB2452, as a reversal agent for the antiplatelet drug ticagrelor.

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