The damaged biotech basket has been emptying out currently, however the newest addition is Ikena Oncology (IKNA) (~$75MM market cap), a scientific stage biotechnology concentrating on most cancers therapies, that introduced yesterday they’re shuttering improvement on their most superior remedy candidate, IK-930, decreasing their workforce by 53% (they beforehand did a 35% layoff in January) and can pursue strategic options. Notably this is not a full cease of improvement, Ikena does have one other asset (IK-595) that dosed its first Section 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.
Beneath 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 concerning reverse mergers going into impact July 1st might act as a catalyst; I do not suppose this course of will take terribly lengthy.
Some gadgets to notice right here:
- OrbiMed is the biggest shareholder with roughly 23% of the shares. Latest related 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 improvement, however IKNA is trying to promote or out-license these. Most likely minimal worth, however might add a couple of cents per share in upside.
- Ikena Oncology has been fast to already sublease house and promote lab gear, neither for important sums, however reveals some shareholder friendliness in shifting rapidly to a shoestring operation to protect worth.
Disclosure: I personal shares of IKNA