NEW YORK – Gritstone Bio on Thursday filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware.
The Emeryville, California-based firm said it will use the court-administered restructuring process to preserve value and pursue strategic alternatives. Gritstone is in talks with a party that can act as a stalking horse bidder or plan sponsor that will allow it to continue researching and developing next-generation vaccines and immunotherapies for cancer and infectious diseases. The company said it will present an agreement on a "value-maximizing transaction" to the court as early as next week.
The bankruptcy announcement comes as Gritstone has struggled with the development program for its personalized neoantigen cancer vaccine, Granite. Early Phase II data showed the treatment didn't improve colorectal cancer patients' molecular responses versus chemotherapy, but the company has remained steadfast that it needs to track the vaccine's impact on ctDNA over the long term.
"We recently reported encouraging interim Phase II data from our ongoing study evaluating Granite, which continues to demonstrate an emerging benefit for patients, however, additional time is needed for the data to mature," said Gritstone Cofounder and CEO Andrew Allen in a statement. "The decision to file for Chapter 11 relief allows us to stay focused on our mission of bringing potentially lifesaving treatments like Granite to patients around the world."
During its financial restructuring process, Gritstone said it will operate normally and continue developing vaccines and advancing neoantigen immunotherapy and infectious disease clinical programs currently underway.
Pachulski Stang Ziehl & Jones is Gritstone's legal counsel; Fenwick & West is its general corporate counsel; Raymond James & Associates is its investment banker; PwC is its financial adviser; and C Street Advisory Group is its strategic communications adviser.