Sector News

Carbylan pulls pain drug trial, puts itself up for sale, cuts staff

April 18, 2016
Life sciences

It’s dark days for Carbylan as it looks for a buyout after halting a key Phase III pain drug trial–and announces that it will immediately cut nearly all of its staff.

What a difference a year makes as last April, the Palo Alto, CA-based biotech raised $65 million through an IPO to fund late-stage trials of its experimental osteoporosis knee pain treatment.

The injectable Hydros-TA combines a corticosteroid with a viscosupplement, using a cross-linking formulation that aims to help toward short-term treatment of knee pain and long-term relief from chronic issues.

But in Feb., the company announced that its Phase III trial for the treatment hit one primary endpoint–but missed another, severely hampering its future prospects and its original plans to submit its injection to the FDA early next year.

The biotech is now halting any further studies on the drug and said in a statement today that is it: “Actively pursuing a strategic transaction, including a merger or acquisition of the company. As previously announced, Carbylan has engaged Wedbush PacGrow to act as its strategic financial advisor for this process.”

Carbylan, low on cash, also announced an “immediate” cutting of 14 employees–it currently only has 17 in total–in order to “preserve capital and further streamline the company’s operations in preparation for a potential strategic transaction.”

Carbylan said it will have around $25-$30 million of net cash available for any deal, with the cuts and halting of its research helping to stop this from being lower.

This follows a similar fate of several other biotechs this month, with Durham, NC-based Heat Biologics announcing it was cutting its workforce by a fifth and scaling back a key cancer trial, while the Cambridge, MA-based Bind Therapeutics also said it would ax 38% of its workforce this month and also seek to potentially sell the company.

By Ben Adams

Source: Fierce Biotech

comments closed

Related News

September 25, 2022

Rise of the machines: Novo Nordisk pledges $200M to create first quantum computer for life sciences

Life sciences

Big Pharma has long seen the potential for AI and machine learning to accelerate drug development. But Novo Nordisk is going a step further by channeling $200 million toward the creation of a computer that will outrun anything in existence.

September 25, 2022

Mount Sinai AI uncovers new brain analysis method to predict dementia, Alzheimer’s disease

Life sciences

Current methods for diagnosing Alzheimer’s disease rely on a complex combination of self- and caregiver-reported symptoms, a physical examination and either a PET scan or a spinal tap to look for evidence of amyloid plaque build-ups in the brain. But a new artificial intelligence-based method may make the diagnostic process a much more objective one.

September 25, 2022

New AstraZeneca-backed report finds big money behind diverse owners and entrepreneurs in Europe

Life sciences

There is lots of talk about diversity and inclusion in business, including in pharma and medtech. A new report by the Open Political Economy Network (OPEN), a think tank focusing on migration and diversity, released its “Minority Businesses Matter: Europe” report highlighting the successes and challenges of ethnic minority-owned businesses in Europe.