Tiny Sienna is calling in Cowen as shares continue to languish long after a severe trial setback
With its cash reserves shrinking and its stock stuck in penny stock territory, tiny Sienna Biopharmaceuticals is bringing in Cowen to explore what kind of financial and strategic alternatives it can drum up at this point. And that event is pointing shares south again.
Sienna needs to raise cash to pay for a planned Phase III pivotal of their new lead drug SNA-120, a TrkA inhibitor for psoriasis, which the biotech says won’t get started without the money to pay for it.
Sienna raised $65 million from its IPO a few years ago, pricing at $15 a share. The stock $SNNA later climbed, but then crashed on clinical failure. Two studies for its lead acne drug failed a year ago, disappointing investors and leaving the stock at 85 cents at the Friday close.
The stock quickly lost 11% on the news Monday.
“These data are clear and unambiguous,” CEO Frederick Beddingfield said at the time of the setback. Investors haven’t been quick to forgive.