Merrimack Pharmaceuticals: Ipsen Milestone Achieved, Liquidation
Clark Street Value
by MDC
1w ago
Merrimack Pharmaceuticals (MACK) ($220MM market cap) is essentially a publicly traded CVR in a c-corp form, I owned the stock briefly in 2017 after the company sold Onivyde to Ipsen and committed to passing through any future milestone payments related to Onivyde to shareholders.  Unfortunately, it didn't have the same protections of a CVR and management ended up diluting shareholders of those future milestone payments by raising equity to pursue their remaining development stage pipeline.  In 2019, the company officially gave up development of new drugs, management was removed and i ..read more
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Aclaris Therapeutics: Strategic Review for Broken Biotech, Big Discount to Cash
Clark Street Value
by MDC
1M ago
Aclaris Therapeutics (ACRS) (~$85MM market cap) is a clinical-stage biotech company focused on developing novel drugs for immuno-inflammatory diseases.  In November, the company announced their lead candidate, zunsemetinib, did not meet its primary or secondary endpoints in a Phase 2 trial for the treatment of moderate to severe rheumatoid arthritis, the stock dropped 80+% on the news.  Earlier this week, Aclaris announced their CEO was stepping down and the company was initiating a strategic review: Concurrent with today’s announcement, Aclaris also announced that it is conductin ..read more
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HomeStreet: BANC/PACW Style Merger with FirstSun, Cheap Proforma
Clark Street Value
by MDC
1M ago
This morning, FirstSun Capital Bancorp (FSUN) (~$850MM market cap) announced they were acquiring HomeStreet (HMST) (~$200MM market cap) in an all-stock transaction that includes a PIPE investment, lead by Wellington (being done at $32.50 per FSUN, or $14.12 per HMST), that neutralizes the mark-to-market impact of HomeStreet's balance sheet.  FirstSun is an insider controlled (69% insider ownership) C&I loan heavy bank that trades OTC with geographic concentration in Kansas, Texas, Colorado, New Mexico and Arizona.  FSUN will be the surviving entity, with FSUN management in charge ..read more
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Liberty SiriusXM Group: Tracking Stock, Merging with SIRI
Clark Street Value
by MDC
1M ago
As most know, Liberty SiriusXM Group (LSXMA/K) is the Malone-style tracking stock for Liberty Media's majority ownership interest in SiriusXM (SIRI).  Liberty famously bailed out SIRI following the financial crisis and made a killing on the investment (much of it early in their holding period).  Nearly fifteen years later -- skipping over a lot of interesting history -- in December, Liberty Media reached an agreement to formally split-off their stake and merge it back with SIRI, creating a simplified one-class share structure at the satellite radio provider.   As almost all ..read more
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Cellectar Biosciences: Positive Data, Warrant Overhang, Biotech Speculation
Clark Street Value
by MDC
1M ago
Cellectar Biosciences (CLRB) is a late-stage clinical biotech company (not a "broken biotech") that recently reported positive data for their lead therapeutic, Iopofosine I 131, for the treatment of Waldenstrom's macroglobulinemia ("WM"), which is an uncommon slow growing type of non-Hodgkin lymphoma.  WM typically inflicts those over the age of 60 and those with WM succumb to the cancer within 5-10 years.  While I try to avoid science plays around here, the results were quite remarkable and provide hope for those with WM who have unsuccessfully tried two prior lines of therapy.  ..read more
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AlloVir: Another Broken Biotech
Clark Street Value
by MDC
1M ago
AlloVir (ALVR) (~$74MM market cap) is clinical-stage biotech focused on cell therapy to treat viral diseases. On 12/22/23, AlloVir paused their Phase 3 studies for Posoleucel after advisors concluded the studies were unlikely to meet their primary endpoints.  Alongside the announcement, the company announced, "we will immediately shift our focus to preserve our substantial remaining capital, review our pipeline, and assess strategic options."  AlloVir does have 3 additional pipeline assets: About AlloVir’s Earlier Stage Virus-Specific T cell Pipeline Adult Kidney Transplantatio ..read more
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Reneo Pharmaceuticals: Phase 2 Study Misses, Pre-SA Broken Biotech
Clark Street Value
by MDC
2M ago
The theme around here continues on -- Reneo Pharmaceuticals (RPHM) (~$45MM market cap) is another broken biotech, this week the company announced their Phase 2 study of Mavodelpar in adult patients with mitochondrial myopathies did not meet its primary or secondary efficacy endpoints.  The stock responded by crashing 80+% as this is a one shot on goal biotech without much of a remaining pipeline.  Reneo is now trading well below liquidation value, while the company has yet to announce a strategic review, it doesn't have many options left, I would expect the official strategic alterna ..read more
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Eliem Therapeutics: Broken Biotech, Reverse Merger Risk
Clark Street Value
by MDC
2M ago
Eliem Therapeutics (ELYM) ($67MM market cap) is a broken biotech that previously was focused on developing therapies for mental illnesses and central nervous system disorders. Back in February of this year, Eliem paused development on ETX-155 due to "challenging capital environment" despite having FDA support for a Phase 2 trial to treat major depressive disorder.  Points to some possible value and expense discipline.  The company did a reduction in workforce of 55% and refocused on the pre-clinical ETX-123. As we've seen with others, they ended up fully pausing all research and deve ..read more
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Kinnate Biopharma: Foresite/OrbiMed Potential Offer, Tang Involved Too
Clark Street Value
by MDC
3M ago
Kinnate Biopharma (KNTE) (~$100MM market cap) is a clinical stage oncology company, while not quite a broken/busted biotech under my usual definition (full white flag on development pipeline and announce strategic alternatives), Kinnate did do a restructuring in September which resulted in 70% of their workforce being laid off as KNTE reprioritized their research efforts to earlier stage programs.  The company recently reported $180.4MM in cash and securities as of 9/30, KNTE guided to having enough cash runway through Q2 2026 in the restructuring announcement, implying an ~$18MM/quarter ..read more
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Theseus Pharmaceuticals: Straight Forward Broken Biotech
Clark Street Value
by MDC
3M ago
Theseus Pharmaceuticals (THRX) (~$140MM market cap), a cancer therapy researcher, is the latest addition to the broken biotech basket trade.  This week, Theseus announced a 72% reduction in workforce and the exploration of strategic alternatives "to consider a wide range of options with a focus on maximizing shareholder value, including potential sale of assets of the Company, a sale of the Company, a merger or other strategic action."  The company hasn't reported for Q3 as of this writing, but did disclose an estimated cash and securities balance of $225.4MM in the same press releas ..read more
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