With its dwindling cash reserves set to run out this month, Windtree Therapeutics had looked like it was struggling to hold on by the tips of its roots. But the company has announced a bold new strategy—it will go on the offensive by trying to acquire small biotechs with FDA-approved products.
The approach is designed to make Windtree, which ended September with just $2.3 million in the bank and liabilities of $14.4 million, into a “revenue-generating company,” CEO Jed Latkin explained in a Jan. 8 release.
“We believe that Windtree becoming a revenue-generating company would be a significantly positive transformation and would mark a new chapter in our growth story," Latkin said.
Windtree will be assessing the “many small biotech companies that struggle to maximize [the] commercialization potential” of their FDA-approved products, according to yesterday’s release.
The idea is that Windtree will become a parent company to these newly acquired “strategic subsidiaries.”
“The company's management team has commercialization expertise in both large pharmaceutical and small biotech companies across multiple therapeutic areas, potentially enabling them to leverage synergies and optimize commercial performance across future subsidiaries,” the biotech added.
Even Windtree’s lack of available cash shouldn’t be an issue—the hope is that these deals will be all-stock transactions.
The company’s own pipeline continues to demonstrate potential, with its steroidal drug istaroxime shown to help raise blood pressure in a phase 2 extension study back in September. Lee’s Pharmaceuticals bought the Chinese rights to the drug a year ago, with a phase 3 study in that country in the works and up to $138 million in potential milestone payments to come Windtree’s way should that pay off.
Latkin said Windtree’s new direction would allow it to “maintain our commitment to advance our promising cardiovascular and oncology pipeline while simultaneously leveraging our deep commercialization expertise to accelerate revenue growth through strategic acquisitions.”
“This approach allows us to create near-term value through acquired commercial operations while preserving the potential of our development programs,” the CEO added.