2023-10-10 12:13:05 ET
Nano-cap biotech Athersys ( NASDAQ: ATHX ) fell ~50% on Tuesday after the developer of MultiStem cell therapy warned about a potential bankruptcy filing following a setback in a Phase 3 trial for the candidate.
Cleveland, Ohio-based Athersys ( ATHX ) said it will be forced to file for bankruptcy protection if it fails to secure a strategic transaction or sufficient financing soon.
The announcement comes after investigators determined that the company’s Phase 3 MASTERS-2 pivotal clinical trial for MultiStem in ischemic stroke was not adequately powered to reach the primary endpoint.
While there were no safety issues, Athersys ( ATHX ) is pausing future enrollments in MASTERS-2 until an additional data analysis is complete with the help of an independent statistician.
Meanwhile, the company intends to secure near-term funding from Healios K.K. ( OTCPK:HLOSF ) after the Japanese biotech signed a memorandum of understanding to obtain global rights for MultiStem targeting its use in acute respiratory distress syndrome (ARDS).
Per the terms, Athersys ( ATHX ) is set to receive $1.5M–$5.4M in near-term payments and up to $150M in potential milestones and royalties from Healios. There will be additional revenue from the sale of existing doses of MultiStem.
More on Athersys, Healios, etc.
- Athersys shares slide on pricing $3.5 million stock offering
- Seeking Alpha’s Quant Rating on Athersys
- Historical earnings data for Athersys
- Financial information for Athersys
- Historical earnings data for Healios K.K.
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Athersys crashes after bankruptcy warning