With two attempts to merge with other companies having collapsed, Vincerx Pharma has been left with no choice but to start winding down.
The antibody-drug conjugate biotech had been in the process of making a last-ditch push to merge with computing infrastructure company QumulusAI. The privately owned AI-focused company would have used the merger to join the Nasdaq via Vincerx’s listing.
Announcing the plans last month, Vincerx’s acting CEO Raquel Izumi, Ph.D., said the merger would “allow us to create value for our stockholders by entering the AI space at a time of rapid growth.”
But Vincerx revealed in a post-market release Tuesday that it has now terminated the nonbinding letter of intent regarding the merger.
“Following this decision, the company’s board of directors has authorized management to initiate wind-down activities and continue exploring monetization of assets and out-licensing opportunities,” Vincerx explained.
“Although unprecedented, adverse market dynamics prevented us from continuing the development of our programs, numerous patients with cancer—who had few therapeutic options—benefited from our therapies in the phase 1 trials,” Izumi said in the release.
The collapse of the QumulusAI merger followed hot on the heels of a failed attempt by Vincerx to merge with fellow ADC company Oqory. When it announced that deal attempt in late December, Vincerx also initiated a C-suite clear-out that saw Ahmed Hamdy, M.D., stepping down as CEO and Chief Financial Officer Alexander Seelenberger leaving his role, alongside a wider “workforce reduction.”
Money was already tight, with Vincerx pointing out last month that the $3.9 million it had in the bank as of the end of February was due to run out late in the second quarter.
The Palo Alto, California-based company has three candidates in its phase 1 pipeline in the form of a next-gen ADC, a small-molecule drug conjugate and a CDK9 inhibitor. There is also another ADC in preclinical development.