By Colin Kellaher
Gritstone bio has filed for chapter 11 bankruptcy, as the clinical-stage biotechnology company continues to explore strategic alternatives.
Gritstone on Thursday said it plans to use the bankruptcy court-administered restructuring process to preserve value and bolster its capital position as it continues a Phase 2 study of its immunotherapy candidate in colorectal cancer.
The Emeryville, Calif., company, which last month reported encouraging interim data from the study, said the chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware affords it the additional time needed for the data to mature.
Gritstone last month also said it had hired Raymond James as its financial adviser to assist in reviewing potential value-maximizing strategies.
The company on Thursday said it is in talks with an undisclosed party to act as a lead bidder or restructuring plan sponsor, adding that it plans to present an agreement for a value-maximizing transaction to the bankruptcy court as early as next week.
Shares of Gritstone, which closed Wednesday at 19.8 cents, were recently down 32% to 13.5 cents in premarket trading. Shareholders are generally wiped out in bankruptcy cases.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
October 10, 2024 06:21 ET (10:21 GMT)
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