The damaged biotech basket has been emptying out currently, however the newest addition is Ikena Oncology (IKNA) (~$75MM market cap), a medical stage biotechnology focusing on most cancers therapies, that introduced yesterday they’re shuttering growth on their most superior remedy candidate, IK-930, lowering their workforce by 53% (they beforehand did a 35% layoff in January) and can pursue strategic alternate options. Notably this is not a full cease of growth, Ikena does have one other asset (IK-595) that dosed its first Part 1 affected person in December 2023. However Ikena does a pleasant job of itemizing their working bills of their 10-Q, making estimating future money burn barely simpler.
Under is my fast again of envelope liquidation evaluation:
The method for these conditions is a effectively worn street at this level, others have additionally pointed to the brand new money shell guidelines relating to reverse mergers going into impact July 1st might act as a catalyst; I do not assume this course of will take terribly lengthy.
Some objects to notice right here:
- OrbiMed is the biggest shareholder with roughly 23% of the shares. Latest comparable conditions, KNTE and THRX, additionally featured OrbiMed close to the highest of shareholder registry, each produced good outcomes with money plus CVR buyouts.
- Bristol-Myers Squibb (BMY) beforehand had a collaboration settlement with Ikena for IK-175 and IK-412, they declined to go ahead with growth, however IKNA is trying to promote or out-license these. In all probability minimal worth, however might add just a few cents per share in upside.
- Ikena Oncology has been fast to already sublease area and promote lab gear, neither for important sums, however exhibits some shareholder friendliness in shifting shortly to a shoestring operation to protect worth.
Disclosure: I personal shares of IKNA
