Sector News

Struggling GlobeImmune brings in financial advisers as options dwindle

August 14, 2015
Life sciences
Not long after a mid-stage trial failure blasted its stock value and forced the company to lay off most of its staff, a troubled GlobeImmune has brought in Cantor Fitzgerald to advise the biotech on its “strategic options”–which may signal that a fire sale is in the offing.
 
GlobeImmune CEO Timothy Rodell had tried to make the best of things when he fingered signs of biologic activity among a handful of patients given the hep B vaccine GS-4774 in a Phase II trial. But the big takeaway was that the Louisville, CO-based company’s lead program had flunked out when given a chance to establish proof-of-concept data among the 178 patients in the study.
 
As a result of that failure, GlobeImmune’s shares were shattered and the company’s market cap sits at a tiny $15 million–a bite-sized target for anyone interested in the company.
 
Gilead in-licensed the hep B program back in 2011 and the biotech has a second Phase II trial underway as well. Celgene ($CELG), meanwhile, stepped in early a few days ago to pick up its option on GI-6207, which targets cancer cells that express a carcinoembryonic antigen.
 
Celgene paid only $1.9 million for the accelerated option, with potential royalties attached, gaining a therapy that’s now in a 34-patient Phase II study at the NCI, where investigators are studying its impact on calcitonin levels–a biomarker for recurrent medullary thyroid cancer.
 
The biotech industry has enjoyed a three-year romp on Wall Street, but weak companies with small pipelines are at risk of a savage beating at the hands of investors when things go sour. GlobeImmune only raised about $15 million when it sold a batch of IPO shares at $10 each–well under its range–last summer. The stock was trading at $2.60 this morning.
 
By John Carroll
 

comments closed

Related News

January 22, 2023

Sun Pharma to buy Concert Pharmaceuticals for $576m

Life sciences

Sun Pharmaceutical Industries has signed a definitive agreement to buy all outstanding shares of Concert Pharmaceuticals in a deal valued at $576m. Under the deal, the company will buy all shares of Concert common stock through a tender offer for $8.00 per share in cash upfront payment.

January 22, 2023

Novo Nordisk diabetes pill wins FDA approval for first-line use

Life sciences

The Food and Drug Administration on Thursday approved Novo Nordisk’s diabetes pill Rybelsus as an initial treatment to lower blood sugar levels, a label expansion that will allow it to compete more directly with other oral drugs from Merck & Co. and Eli Lilly.

January 22, 2023

Bayer feeling more heat from activist investors, this time from Bluebell

Life sciences

Since making an ill-advised $63 billion buy of Monsanto in 2018, Bayer has faced heaps of pressure from investors that have called for the company to oust its leadership and to restructure. Now comes new pressure from a familiar source. Bluebell Capital Partners has bought an undisclosed stake in the company and is agitating for a breakup, sources told Reuters.

How can we help you?

We're easy to reach