Public procurement devastation and repeated rejections by the FDA have added a bleak future for Zosano Pharma as it appears the 16-year biotech journey is coming to an end.
The Fremont, Calif.-based biotech filed for bankruptcy on Wednesday and is currently operating as a ‘debtor in possession’ and intends to dispose of ‘substantially all of its assets’ during the chapter deal. 11, Zosano said Thursday morning.
These assets include a migraine drug that the FDA rejected in 2020, a Covid-19 vaccine delivered via a microneedle patch, an osteoporosis drug, cancer vaccines, and various other prophylactic vaccines for children. and adults, according to the Zosano website.
Zosano is one of the few biotechs to shut down operations in recent months as relentless public markets wiped out large amounts of value from many drug developers after a pandemic boom could no longer sustain the industry. on greener pastures. Kaleido Biosciences, the pioneer-founded flagship microbiome biotech, closed in April and Orphazyme sold itself with the help of the Danish courts last month.
The past few months have been particularly difficult for Zosano employees. The company laid off 31% of its workforce in March and then laid off another 37% a month later, according to SEC filings. And, further cementing a cloudy future for Zosano, biotech vice president of clinical development and medical affairs Donald Kellerman has left the company, effective June 1.
After getting the FDA’s rejection a few years ago for its potential migraine drug, Zosano tried to resubmit, but the FDA again had disagreements over the drug. In April, the agency granted the company a 12-month extension to resubmit the NDA for M207, but Zosano said that month it would suspend the program to preserve cash.
As of April 26, Zosano had about $11.4 million in cash and cash equivalents and was working with financial adviser SierraConstellation Partners to determine the future of his assets.