The damaged biotech basket has been emptying out in recent times, however the newest addition is Ikena Oncology (IKNA) (~$75MM marketplace cap), a medical degree biotechnology concentrated on most cancers treatments, that introduced the day before today they’re shuttering building on their maximum complicated treatment candidate, IK-930, decreasing their body of workers through 53% (they up to now did a 35% layoff in January) and can pursue strategic possible choices. Significantly this is not a complete forestall of building, Ikena does have any other asset (IK-595) that dosed its first Section 1 affected person in December 2023. However Ikena does a pleasant process of listing their running bills of their 10-Q, making estimating long term money burn moderately more uncomplicated.
Under is my fast again of envelope liquidation research:
The method for those scenarios is a smartly worn highway at this level, others have additionally pointed to the brand new money shell laws relating to opposite mergers going into impact July 1st may act as a catalyst; I do not believe this procedure will take extraordinarily lengthy.
Some pieces to notice right here:
- OrbiMed is the most important shareholder with roughly 23% of the stocks. Contemporary equivalent scenarios, KNTE and THRX, additionally featured OrbiMed close to the highest of shareholder registry, each produced excellent effects with money plus CVR buyouts.
- Bristol-Myers Squibb (BMY) up to now had a collaboration settlement with Ikena for IK-175 and IK-412, they declined to head ahead with building, however IKNA is taking a look to promote or out-license those. Almost certainly minimum worth, however may upload a couple of cents in step with percentage in upside.
- Ikena Oncology has been fast to already sublease house and promote lab apparatus, neither for important sums, however displays some shareholder friendliness in transferring briefly to a shoestring operation to maintain worth.
Disclosure: I personal stocks of IKNA
