Date: 2016-05-02
Type of information: Restructuring
Compound:
Company: Bind Therapeutics (USA - MA)
Therapeutic area: Cancer - Oncology
Type agreement: restructuring
Action mechanism:
Disease:
Details: * On May 2, 2016, Bind Therapeutics announced that it has elected to file a voluntary petition under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. "The protections afforded by Chapter 11 provide for an orderly process and additional time that enables us to pursue the strategic and financial alternatives that are in process", said Andrew Hirsch, president and chief executive officer, BindTherapeutics. "The filing minimizes the impact from the recent demand by our lender, Hercules Technology III, L.P, for accelerated repayment of our outstanding loan. Our current cash and assets exceed the loan amount, and we are current on our regularly scheduled repayment obligations. Through this process, we expect to be able to maintain ongoing financing activities and collaborator obligations while moving our R&D initiatives and pipeline forward." Bind intends to continue to manage and operate its business under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. The Company is working with an investment bank to review financial and strategic alternatives with the goal of maximizing stockholder value. Potential alternatives to be explored further and evaluated during the review process may include raising additional capital, a strategic collaboration with one or more parties, or the licensing, sale or divestiture of some, or all, of the Company's proprietary technologies. * On April 6, 2016, following results from the BIND-014 (PSMA-targeted docetaxel nanoparticles) phase 2 iNSITE 1 trial in advanced non-small cell lung cancer (NSCLC) of squamous histology and the iNSITE 2 trial in cervical and head and neck cancersand in connection with the previously announced shift in research and development strategy, Bind Therapeutics announced a restructuring plan designed to streamline operations and reduce the Company's operating expenses. The restructuring will include a workforce reduction of 38 percent, and is expected to be substantially complete by the end of April 2016, after which the Company will have 61 employees. In addition, Bind will evaluate options for the Company's wholly owned subsidiary in Moscow. Collectively, these actions are expected to bring Bind's quarterly cash burn rate to approximately $6 million per quarter by the third quarter of 2016. In addition to the workforce reduction initiatives, the Company is actively working with an investment bank to initiate a review of financial and strategic alternatives with the goal of maximizing stockholder value. Potential alternatives to be explored and evaluated during the review process may include raising additional capital, a strategic collaboration with one or more parties, or the licensing, sale or divestiture of some of the Company's proprietary technologies. Pending a decision to undertake any financial or strategic alternatives, Bind is continuing its development and collaboration activities in accordance with its current innovative medicines strategy while managing its cash position. There is no finite timetable for completion of the financial and strategic review process.
Bind Therapeutics recently announced a shift in its R&D efforts to focus on developing innovative medicines that incorporate unique combinations of novel tumor-directed targeting ligands and new classes of payloads, including oligonucleotides and molecularly targeted therapies. The company currently has one kinase inhibitor Accurin, AZD2811, in phase 1 clinical trials in collaboration with AstraZeneca. A second kinase inhibitor Accurin is currently in IND (investigational new drug) -enabling activities through a collaboration with Pfizer. Following optimization of lead product candidates and completion of preclinical studies, BIND anticipates initiation of clinical testing for one or more proprietary innovative product candidates as early as 2018.
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