In an effort to keep itself afloat, tiny Diffusion Pharmaceuticals considers licensing core technology or company sale – Endpoints News
A Virginia biotech is now looking at all its options to stay afloat, even if it means selling the company’s core technology or even the company itself.
Diffusion Pharmaceuticals announced Tuesday that its board, which includes CEO Robert Cobuzzi, has authorized the company to review and evaluate possible strategic opportunities, as Diffusion put it, “in the interest of increasing shareholder value” — including potential transactions to leverage Diffusion’s candidates and others assets.
The biotech has been focused on oxygenation, particularly investing in lead candidate transsodium crocetinate, also known as TSC. In short, that molecule is being investigated to improve oxygen diffusion in cases of hypoxia, basically where oxygen levels in tissues are low. Hypoxia can also be a side effect of other diseases such as cancer, Covid-19 or lung disease.
Cobuzzi said in a statement that while the biotech believes the candidate could still benefit patients, “we continue to seek opportunities to leverage our cash position.” The biotech added that said opportunities could include strategic transactions such as a joint venture, outlicensing or selling some of Diffusion’s technology, or even selling the company.
And as it is, the biotech only has about 18 months of runway left. According to the most recent SEC filing in August,
As of June 30, 2022, Diffusion had $28.5 million in cash, cash equivalents and marketable securities, which the company currently expects will enable it to fund its operating and capital expenditures into the first quarter of 2024, without giving effect to any business development activities the company may undertake.
The biotechnology company did not respond to an inquiry from News about endpoints before publication.
This is one of the more recent updates from Diffusion after it had to do a 50-for-1 reverse stock split back in April to regain compliance with the Nasdaq. The company was given a notice by Nasdaq back in 2021 that it was a penny stock performer, with a listing price below $1 for the previous 30 business days.
In May, the biotech added ex-BridgeBio VP Raven Jaeger as its chief regulatory officer.