Neothetics sheds staff, looks for survival strategy in wake of trial failure; GSK walks away from OncoMed pact
⇨ About two weeks after Neothetics’ shares $NEOT nose-dived into penny stock territory following the Phase II failure of its aesthetic fat-buster, the company says it’s shedding staff to conserve cash while setting out to look for a deal, or merger or some other strategic alternative, to help set things right for disappointed investors.
⇨ The bad news keeps piling up at OncoMed $OMED. GlaxoSmithKline, we now hear through a SEC filing, has terminated its pact with the biotech on tarextumab. GSK inked a $1.4 billion deal with OncoMed about nine years ago, but it’s all over now. OncoMed has reported a series of clinical failures for its pipeline and its market cap has shrunk to $122 million.
⇨ Waltham, MA-based Kala Pharmaceuticals has set the terms for its IPO. The biotech will look to sell 6 million shares at $14 to $16 each, raising roughly $90 million if it’s a success.
⇨ AstraZeneca has finally sold off its longtime US headquarters in Delaware for $50 million. The pharma giant has been on a belt-tightening campaign in the US for about a year now, looking for new ways to shave costs out of the business. In this new move it’s leasing back facilities for its remaining staff. “AstraZeneca remains committed to the state of Delaware,” spokeswoman Alexandra Engel told the News Journal. “Selling the site and leasing back a smaller footprint will allow us to more efficiently use our office space while lowering ongoing operational costs.”
