Pfizer makes bid for Bind after repayment woes
- Bind Therapeutics, which filed for bankruptcy in May, is seeking court approval for a $20 million stalking-horse bid from Pfizer for most of its assets, the company said late last Friday.
- Pfizer would be the initial bidder under federal bankruptcy code, with an auction to follow on July 25 if Bind receives other bids.
- Bind filed for Chapter 11 bankruptcy on May 1 after Hercules Technology demanded accelerated repayment of a $15 million loan.
It's been nearly three years since Bind Therapeutics went public in 2013. Although the company was able to attract top-notch companies, signing collaborations with Pfizer, AstraZeneca, Roche, and Merck, its stock has been on a steady decline from post-IPO highs of around $15 per share. After declaring bankruptcy in May, Bind stock dropped below $1.
Bind has worked to develop nanoparticles for the treatment of cancer. One candidate developed in collaboration with AstraZeneca has reached clinical testing, according to the company.
But CEO Andrew Hirsch initiated bankruptcy in May after the company's lender demanded faster repayment of a loan. The announcement came on the heels of Bind's decision to layoff 38% of its staff and halt enrollment in a trial evaluating the compound BIND-014 against cervical and head and neck cancers.
Pending court approval of Pfizer's stalking-horse bid, Bind will move ahead with an auction on July 25 for the majority of its assets. If Pfizer is selected as the successful bidder, the company expects the transaction to be completed sometime in the third-quarter.
Stalking-horse bids are initial offers to buy a bankrupt company's assets. They help protect bankrupt companies from extremely low bids.
- BusinessWire Statement
- The Pharma Letter Bind Therapeutics accepts “stalking horse” bid from Pfizer