By Chris Wack

Codiak BioSciences Inc. shares were down 57% at 19 cents after the company said that it has voluntarily filed for chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware, and would seek to pursue a sale process for its assets.

The stock hit its 52-week low of 16 cents earlier in the session, and are down 97% in the past 12 months.

The biopharmaceutical company said it began a marketing process ahead of the filing to determine the level of interest and is in ongoing discussions with several parties, and expects to consummate a sale of the entire business or its core assets as soon as reasonably practicable.

Codiak shares were halted at 40 cents in premarket trading.

"The board and management team have thoroughly assessed all of our strategic options and believe that this structured process represents the best possible solution for Codiak, taking into account our financial needs and the stage of our clinical and research programs," said Chief Executive Douglas E. Williams.

Codiak has appointed Paul Huygens as chief restructuring officer. Mr. Huygens will oversee the business and its restructuring process, working to execute the company's business strategy and conduct a value-maximizing sale process.

The company's executive management team is expected to depart the company on April 4. Chief Technology Officer Konstantin Konstantinov will remain with the company.

Codiak said it would be filing various "First-Day" motions with the Bankruptcy Court requesting customary relief that would enable it to transition into chapter 11 without disruption to its ordinary course of operations. Codiak expects these motions to be approved within the first few days of the case.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

March 27, 2023 09:59 ET (13:59 GMT)

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