Struggling biotech sells its API manufacturing arm to narrow its focus
After a stock plunge in 2021 following a key FDA rejection, cancer biotech Athenex crashed into penny stock territory this year and is now looking to sell a piece of itself to make some cash.
The company has agreed to sell off all its equity interests in its China subsidiaries, which are primarily engaged in API manufacturing, to TiHe Capital (Beijing).
The estimated $19 million deal will see Athenex receive at least 70% of the proceeds at closing, and the proceeds will be used to pay down existing debt and for general operations, the company said. However, Athenex and TiHe also plan to enter into a long-term supply agreement for the manufacture and supply of certain APIs but were mum on the details.
Unlock this article instantly by becoming a free subscriber.
You’ll get access to free articles each month, plus you can customize what newsletters get delivered to your inbox each week, including breaking news.