With its lead antibiotic under a cloud, Cempra asks Morgan Stanley for help with a strategic review
With its stock price beaten down by successive setbacks for its lead antibiotic, Cempra has brought in Morgan Stanley to help advise its execs as they review strategic options for a company with more cash than confidence in its future.
At the end of last year, Chapel Hill, NC-based Cempra had $231 million in cash, which is significantly more than its current market cap. Two days before the end of the year the biotech was also handed a rejection for its lead antibiotic solithromycin after regulators concluded — to no one’s surprise — that the company would need to run a safety study before they could reconsider offering marketing approval to an antibiotic tied to clear signs of liver toxicity.
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