Mitochondria biotech receives Morningside buyout offer after PhII fail; Oncology microcap withdraws IPO plans
Not even two months after reporting a Phase II fail for its lead drug candidate, Stealth BioTherapeutics is now being eyed for a potential acquisition, with one firm wanting to take it private.
Stealth reported Monday that Morningside Venture Investments sent Stealth’s board of directors a non-binding preliminary proposal to acquire all outstanding shares not yet owned by Morningside for 2.6 cents per share and 31.3 cents per ADS.
According to a statement that Stealth put out, the board had previously formed a committee of three independent directors (Kevin McLaughlin, Francis Chen, and Lou Lange) to “evaluate all strategic alternatives available to the Company.” That committee, Stealth said, expects to retain a financial advisor to assist with its evaluation of that offer or any other alternative transactions open to pursuit.
Stealth’s share price $MITO currently hovers around 28 cents a share.
The board and the committee said that no decisions have been made yet and that “The Company does not undertake any obligation to provide any updates with respect to any transaction, except as required under applicable law.”
Stealth’s elamipretide failed on primary goals in low luminance visual acuity and geographic atrophy progression in patients with GA secondary to dry age-related macular degeneration. It’s the company’s most recent fail after the FDA refused the drug for genetic condition Barth syndrome last fall.
Phase I neoantigen biotech pulls back $9 million IPO plans
New Jersey biotech Advaxis has decided to pull back its plans for an IPO.
The cancer-focused biotech had originally filed for an IPO last month, initially aiming to raise $9 million shares for approximately $3.70 a share. As of right now, the company is examining drug candidate ADXS-504 in a Phase I clinical trial announced last July in patients with “biochemically recurrent prostate cancer.”
The biotech, founded more than three decades ago in 1987, planned to list on Nasdaq under the ticker ADXS. It did not list why it was withdrawing its IPO plans, but according to an amended S-1 filed on May 24, the proceeds were going to be used “for working capital and other general corporate purposes.”