1. Scrip
  2. >>Business
  3. >>Financing

Finance Watch: Financial Market Turmoil Ends Amicus SPAC Deal For Gene Therapy Spinout

Rare Disease Specialist Unveils Layoffs, R&D Reprioritization

 
• By Mandy Jackson

Public Company Edition: As their stock prices plummet, Adagio reshuffles its research plan and names a new CEO, while Yumanity restructures and seeks strategic alternatives. Also, Bristol sells $6bn worth of notes, Amgen issues $750m green bond, and Inhibrx and Amryt amend and refinance debt.

Finance Watch Public Company
• Source: Alamy

The ongoing financial market turmoil for biopharma has put an end to Amicus Therapeutics, Inc.’s plan to spin out its gene therapy business in a separate publicly traded company called Caritas Therapeutics, Inc. Caritas was set to go public by merging with the special purpose acquisition corporation (SPAC) ARYA Sciences Acquisition Corp. IV, but Amicus and ARYA IV announced on 24 February that they have terminated the merger agreement due to market conditions.

SPAC mergers have become particularly difficult routes for biopharma firms to finance drug development plans, with many companies’ stock prices sinking after the deals close. (Also see "SPAC Mergers Take Biopharmas Public, But Valuations Often Sag Post-Closing" - Scrip, 22 December, 2021.) SPAC mergers are also raising less cash than expected because SPAC investors are redeeming their shares rather than staying invested in the merged company

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on Scrip for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required
Start Free Trial

Already a subscriber?

More from Financing

Finance Watch: Prime, Kyverna, Allogene And More Announce Job Cuts

 
• By Mandy Jackson

Restructuring Edition: Prime Medicine ended its sole clinical-stage program to prioritize preclinical and partnered programs, cutting 25% of its workforce to extend its cash runway. Meanwhile, earnings season brought workforce reductions at Kyverna, Allogene, Leap and others.

Affimed’s ASCO ‘Hail Mary’ As Survival Chances Slim

 
• By Kevin Grogan

The German biotech has been forced into insolvency and NASDAQ suspension.

Hengrui Set For Biggest Biopharma IPO So Far This Year

 
• By Dexter Jie Yan

Jiangsu Hengrui Pharmaceuticals is gearing up for what will be 2025's biggest biopharma IPO so far, hoping to raise up to $1.27bn on the Hong Kong Stock Exchange. China's top drug maker by pipeline size plans to use part of the proceeds to reboot its overseas clinical trials ambitions.

Finance Watch: Funding Alternatives Become The Norm In Tough Public Markets

 
• By Mandy Jackson

Public Company Edition: With fewer follow-on offerings, drug developers are pursuing other options. Axsome accessed up to $570m in debt, Evolus obtained $250m in a new credit facility and Abeona raised $155m from a PRV sale, but Apimeds was able to execute a small $13.5m IPO.

More from Business

Pfizer Scoops 3SBio’s PD-1/VEGF Bispecific In ADC Combo Push

 
• By Dexter Jie Yan

Pfizer is doubling down on partnerships for combination therapies involving its antibody-drug conjugates through a new alliance with China's 3SBio’s for a bispecific antibody, potentially worth up to $6bn.

CRISPR Thinks Outside Gene-Editing Box With Sirius Deal

 
• By Alaric DeArment

The gene-editing company is making a deal with RNA interference-focused Sirius, but still focusing on cardiovascular disease, a major area of its pipeline.

HHS Intensifies Pressure On Pharma With MFN Pricing Benchmark

 
• By Jessica Merrill

The Trump administration released more details on “most favored nation” price targets drug companies are expected to apply to US drug prices.