Jonathan Mow, PhaseBio CEO

SFJ plays hard­ball, de­mands rights to Phase­Bio's lead can­di­date

More than two and a half years af­ter back­ing Phase­Bio in de­vel­op­ing a drug that can re­verse a spe­cif­ic blood thin­ner, Cal­i­for­nia-based SFJ Phar­ma­ceu­ti­cals is de­mand­ing rights to the drug — as in­vestors send the stock price tank­ing.

SFJ, an Abing­worth and Black­stone-backed com­pa­ny that pro­vides cer­tain phar­ma and biotechs with at-risk fund­ing and clin­i­cal back­ing in ex­change for rev­enue, hand­ed Phase­Bio a pro­gram trans­fer no­tice last week, an­nounced in an SEC fil­ing Tues­day. Per Phase­Bio, SFJ is de­mand­ing that Phase­Bio’s rights to ben­tracimab be trans­ferred to SFJ, cit­ing that Phase­Bio has failed to rec­ti­fy a “Go­ing Con­cern Con­di­tion,” a fi­nan­cial red flag giv­en out af­ter a com­pa­ny de­ter­mines that its abil­i­ty to stay in busi­ness is a sub­stan­tial con­cern.

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