Struggling GlobeImmune Taps Financial Adviser to Assist in "Strategic Alternatives"

Struggling GlobeImmune Taps Financial Adviser to Assist in ‘Strategic Alternatives’
August 13, 2015
By Alex Keown, BioSpace.com Breaking News Staff

LOUISVILLE, Colo. -- GlobeImmune, Inc. , a company that develops treatments for cancers and infectious diseases, has tapped an outside financial adviser, Cantor Fitzgerald & Co., to assist in “evaluating strategic alternatives” to maximize shareholder value, the company announced this morning.

Other than announcing the hiring of a third party advisory team, GlobeImmune’s executives did not specify any hoped-for direction of the company, including seeking acquisition by a larger pharmaceutical company, or a total sell-off it its products, and GlobeImmune said it had enough cash in hand to maintain operations through 2016, based on current levels. The company is reeling after it disclosed in June its hepatitis B drug GS-4774 failed during clinical trials. The failure prompted a mass layoff of employees. Since then the company has a value of less than $20 million.

The company did note its three lead product candidates are exclusively licensed to Celgene Corporation and Gilead Sciences, Inc. , and development costs for the three programs are covered by these collaborations.

GlobeImmune does not have a defined timeline for the strategic review process and is not confirming that the review will result in any specific action or transaction, the company said.

GlobeImune’s more than 7 percent this morning, trading at $2.41 per share. The stock opened this morning at $2.88 per share.

Following the drug’s failure to significantly reduce the hepatitis B surface antigen (HbsAg) at week 24, GlobeImmune announced it was slashing “the majority” of its workforce as part of an evaluation of strategic options that includes conservation of capital.

“This workforce reduction is a necessary action to conserve working capital and provide maximum flexibility in determining the future direction of GlobeImmune,” Timothy C. Rodell, president and chief executive officer GlobeImmune, Inc., said in a statement at the times the layoffs were announced.

At the close of 2014, GlobeImmune had 22 employees, 17 of which were engaged in research and development and manufacturing activities and five were engaged in support administration, including business development, finance, information systems and human resources. The layoffs were expected to impact a minimum of 10, a company spokesperson said in June.

The company showed a net loss of $16.3 million in 2014. In May, the company reported a net loss of $1.6 million for the first quarter of 2015. GlobeImmune reported cash and cash equivalents of $14.4 million.

Back to news