It’s understandable when a company running on fumes takes action to make its dwindling finances last while fundraising conditions are difficult. But when a company with a long cash runway implements layoffs and evaluates strategic alternatives, observers may be confused. Perhaps that’s why two potential buyers reacted quickly after Theseus Pharmaceuticals, Inc. announced a 72% workforce reduction and said it is considering a wide range of options – including a sale of the company or its assets – despite having $225.4m in cash on its balance sheet.
Theseus revealed its plan to review strategic alternatives on 13 November and on 27 November said that it received interest...