Biotech

Codiak Biosciences files for bankruptcy

Editorial Team
Published on: March 27, 2023

Another biotech company has died. This time, it’s Codiak Biosciences, whose efforts to deliver exosome-based therapeutics have failed.

Codiak has filed for Chapter 11 bankruptcy and will seek a buyer for the entire company or its core assets “as soon as reasonably practicable,” the company announced this morning. Province’s Paul Huygens has already been appointed to oversee the restructuring process in order to secure the best possible sale price.

“The board and management team have thoroughly evaluated all of our strategic options, and we believe that this structured process represents the best possible solution for Codiak, taking into account our financial needs and the stage of our clinical and research programs,” CEO Douglas Williams, Ph.D., said in a statement.

Another biotech bites the dust. This time it’s Codiak Biosciences, whose attempts to deliver exosome-based therapeutics have reached the end of the road.

Codiak has voluntarily filed for Chapter 11 bankruptcy and will attempt to find a buyer for the whole business or its core assets “as soon as reasonably practicable,” it announced this morning. The biotech has already appointed Province’s Paul Huygens to oversee the restructuring process with an eye on securing the best sale price.

“The board and management team have thoroughly assessed all of our strategic options and believe that this structured process represents the best possible solution for Codiak, taking into account our financial needs and the stage of our clinical and research programs,” said CEO Douglas Williams, Ph.D., in a release.

Instead, the company focused its resources on exoASO-STAT6, its phase 1 drug candidate engineered to selectively deliver antisense oligonucleotides to disrupt STAT6 signaling in tumor-associated macrophages and induce an anti-tumor immune response. Preclinical studies showed single-agent anti-tumor activity in models of aggressive hepatocellular carcinoma.

The company also maintained its preclinical engEx-AAV discovery program, which aimed to improve AAV gene therapy. Meanwhile, Codiak’s exoVACC pan beta coronavirus vaccine elicited broad protective immunity against variants of SARS-CoV-2 and other coronaviruses in vivo.

As of the end of September, the company still had $51.8 million in cash, equivalents, and securities in the bank, but with a $19.3 million loss for the quarter, it would have needed significant funding to close the gap and continue as a going concern.