Adamis Pharmaceuticals is slowly tumbling down, and the biotech is looking at all its options.
After a Phase II/III trial failure last month that sent the penny stock player down an additional 50% to just 15 cents a share, the company said Monday that it is examining options to get the best value for its investors. A statement from Adamis indicates that alternatives include anything from a partnership to a sale of Adamis’ two commercial products, Zimhi and Symjepi.
Even beyond that, a merger or sale aren’t necessarily off the table. While Adamis hasn’t publicly decided on anything, it did say in a statement that if a “transaction” is unable to be reached, the biotech may have to look at bankruptcy protection.
In the meantime, Adamis is examining other cost reduction measures, such as layoffs or slowing/halting R&D programs.
This is one of the latest updates for the biotech after the trial, looking at a candidate called Tempol to treat early Covid-19 infections, failed to meet the primary endpoint in 248 patients. While safety wasn’t an issue, efficacy was.
The biotech’s share price $ADMP has now fallen more than 80% since this time last year. And as of this morning, the company went down another 6%.
Adamis declined to comment beyond its press release, citing advice from its lawyers.
The biotech had been focusing on two products — an epinephrine injectable called Symjepi, and then Zimhi, a high-dose naloxone injection approved by the FDA on its third try last year. That approval went through after having previously faced two CRLs due to manufacturing issues.
Adamis has been witness to an internal shakeup of its own in recent months. The biotech appointed co-founder and former CBO David Marguglio as the biotech’s new president and CEO in May after Dennis Carlo’s abrupt departure. Most recently, CMO Ronald Moss turned in his two-week notice to Adamis on Oct. 1, with his resignation effective Oct. 14, per an SEC document filed Tuesday.
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