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Finance Watch: SPAC Deals Stumble, Layoffs Continue As Valuations Struggle To Recover

Axcella, Sensei, Instil, TherapeuticsMD, Novartis Reveal Job Cuts

 
• By Mandy Jackson

Aesther Healthcare Acquisition extended the deadline to merge with Ocean Biomedical, while Intrinsic Medicine no longer plans to go public by merging with a SPAC. In restructuring news, Otonomy begins liquidation, Celyad cuts last clinical program with cash running out and Clovis files for bankruptcy.

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• Source: Shutterstock

Biotechnology valuations generally have been on the rise in recent months, relative to general stock market indices, but there still are a number of drug developers that are having trouble gaining traction with public company investors or maintaining significant valuations. For instance, Intrinsic Medicine Inc. and the special purpose acquisition corporation (SPAC) Phoenix Biotech Acquisition Corp. (PBAX) cited “current market conditions” in announcing that they agreed not to merge after all.

Another SPAC deal is also in danger of not coming to fruition, with Aesther Healthcare Acquisition Corp. announcing on 16 December that it paid a $1m fee to extend the time the SPAC will take to complete its merger with Ocean Biomedical, Inc. by three months to 16 March

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