Restructuring

Weak demand for virus-blocking nasal sprays since the pandemic has left Austrian biotech Marinomed with mounting debts. The company has applied for restructuring proceedings with an Austrian court in an attempt to secure its future.

Restructuring Edition: Lykos recruited a J&J veteran to help its slimmed-down staff resubmit its MDMA-based PTSD therapy. Also, Lexicon cut its field force by 50%, or 75 jobs; Viracta cut its solid tumor program and 23% of its workforce; and Boundless Bio streamlined with moderate job cuts.

The German firm will have to wait until 2025 for a reversal in its fortunes as new CEO Christian Wojczewski accelerates its transformation program with the loss of 400 jobs.

Global investment firm Carlyle has agreed to pay $3.8b for Baxter International’s Kidney Care unit. The newly spun-off business will be known as Vantive.

In this week's podcast edition of Five Must-Know Things: Amgen positions for obesity and diabetes; BMS returns TIGIT asset in pipeline reshuffle; is Kerendia the next jewel in Bayer’s crown?; Japan pharma firms cut jobs; and Sun Pharma seeks GLP-1 partner.

Several major Japanese firms, including Takeda, are planning layoffs at home and elsewhere as they make efforts to streamline their business and costs and cope with R&D and commercial challenges. 

Restructuring Edition: Vir will end influenza, COVID-19 and T-cell-based viral vector platform programs to focus on clinical hepatitis and cancer assets. Also, FibroGen cut 75% of its workforce after a clinical trial failure, while Arbutus, HilleVax, Pfizer and others also announced layoffs.

The company will cut 65% of its workforce to extend its cash runway and focus its resources on AMT-130 for Huntington's disease and three earlier-stage programs moving into Phase I/II studies.

Restructuring Edition: Financial market conditions are improving, but gains have not stopped some companies from cutting costs or shutting down. MEI may wind down if it does not identify another strategic alternative and Aslan has begun to liquidate, while others have cut jobs.

The US FDA’s Center for Devices and Radiological Health is making key structural changes it says will help the center run more smoothly, including the addition of a new marketing and communications division.

Public Company Edition: Alumis grosses $250m after it planned to raise up to $317.7m in its IPO. Also, Zealand adds $1bn in a post-data offering, Tectonic and Eliem close $130.7m and $120m private placements to support recent mergers, and Ginkgo cuts 35% of its workforce.

In a 5-4 decision, the high court says a Chapter 11 bankruptcy plan provision releasing the Sackler family from future liability is not allowed, a decision that could spur a bolus of personal injury trials if another reorganization plan settling thousands of claims cannot be reached.

There is a lot of structural change going on at the German major but it is learning from the way its wholly owned subsidiaries such as AskBio and BlueRock are run.

During recent investor conference, president Stephan Gratziani and CFO John DeSimone discuss Herbalife’s restructuring in addition to progress on digital transformation program and lack of progress on expectations for marketing to consumers prescribed GLP-1 drugs for weight loss.

BIO CEO John Crowley sat down with Pink Sheet at the industry’s annual convention to discuss his vision for a newly restructured BIO, his thoughts on the upcoming US elections and whether he’d ever lead another biotech. 

Public Company Edition: Insmed grossed $650m, Structure raised $476m and Merus brought in $400.2m after positive clinical trial results. But while CARGO raised $110m in a private placement and Day One sold a priority review voucher for $108m, Ikena, Takeda and others cut jobs.

The German group has spent much of the year reviewing the pros and cons of its hybrid structure but there was never any question about divesting Bayer 04 Leverkusen, its extremely successful football team, CEO Bill Anderson told journalists.

CEO Bill Anderson tells Scrip that the switching of patients to the higher dose formulation of the eye disease drug will help secure its future as a big earner for Bayer.

Public Company Edition: Verona Pharma arranged up to $400m in new debt and up to $250m in revenue-related financing ahead of its COPD drug launch. Also, Organon, Sobi and Pacira priced $1bn, $275.1m and $250m note sales, respectively. Marinus, Emergent and Ginkgo cut jobs.

This week, MHRA and NICE released results from their first survey of potential digital health tool users; the FDA warned against using Getinge/Marquet cardiac devices; and Illumina announced plans to hand its Grail spin-off to existing shareholders.