After selling a failed Cerulean for scrap value, the executive team wins a bonus reward
By the end of the third quarter last year, Cerulean had burned through close to $196 million without much to show for it. The 2014 IPO floundered, despite the sizzling boom biotech was experiencing. But that wasn’t too surprising as their lead nano drug failed a Phase IIb trial for non-small cell lung cancer.
Then the same drug failed again last year, for renal cell carcinoma, and the Waltham, MA based company was doomed. The CEO struck a partnership deal with Novartis, but netted only $5 million upfront. So now the company is being sold for parts. The lead, CRLX-101, was wrapped up with its only other drug, the early stage CRLX301, and sold to NewLink for only $1.5 million. Novartis picked up the pipeline tech for a mere $6 million, a rounding number for the pharma giant. A few legacy staffers in the handful who are still left will get job offers.
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