BioSenic is continuing to skirt the biotech graveyard. Seeking to start a phase 3 graft-versus-host disease (GvHD) trial next year, the biotech has outlined how it plans to stretch out its six-figure bank balance to avoid going six feet under—and surface with the cash to resurrect its midterm ambitions.
The Belgian biotech emerged from the merger of Bone Therapeutics and Medsenic last year. BioSenic suspended the orthopedic stem cell therapy program it inherited from Bone over the summer, leaving it focused on Medsenic’s work to develop arsenic trioxide in chronic GvHD. Yet, the company has a more pressing concern than the phase 3 preparations: survival.
BioSenic ended September with just 390,000 euros ($412,000) at hand. Two tranches of 300,000 euros later landed in the biotech’s bank account, courtesy of private equity firm Global Tech Opportunities 15, but cash is still very tight. At the moment, BioSenic calculates it has the money to keep the lights on until the end of January.
In the meantime, the biotech aims to find financing to secure its future, at least until the next cash crunch. BioSenic reached an in-principle agreement with its main creditors, allowing it to focus on financing to support a phase 3 trial of arsenic trioxide in chronic GvHD. The biotech said it is “actively” evaluating various financing options, including “a significant fundraising operation.”
Shareholders have shown little enthusiasm for BioSenic, which currently commands a market cap of less than 10 million euros. The share price fell 10% Wednesday after the biotech provided the latest update on its situation and now sits at just 5 euro cents on the Brussels stock exchange.
A deal for ALLOB, Bone’s stem cell therapy, could enliven BioSenic’s bank balance. The company told investors it is in preliminary talks with Pregene, a Chinese biotech that partnered with Bone, and other potential collaborators about a global deal for the orthopedic therapy.