Sofpironium Bromide

Judith Oke Fresh Tracks is planning to seek approval for liquidation and dissolution from stakeholders pending a better offer. Image credit: Andrii Yalanskyi/Shutterstock Fresh Tracks Therapeutics has announced a proposed dissolution and liquidation of the company in “an orderly fashion” as stated by Andrew Sklawer, President and CEO of Fresh Tracks. Following the report on 19 September, Fresh Tracks stocks witnessed a 53.4% increase on market open of 20 September compared to market close on the 19th, with a market cap of $5.292m. The board agreed to this after multiple attempts to save the biopharma company through mergers, asset sales and financing without success. With the present development, Fresh Tracks is shutting down all clinical and preclinical development programs, and laying off most of its employees by early October leaving out key members of staff to complete the company’s dissolution. In addition, it will file a certificate of dissolution and a delisting from Nasdaq. Recommended Reports Reports LOA and PTSR Model - PVT-REMOVE GlobalData Reports LOA and PTSR Model - TED-N in Paralysis GlobalData View all Companies Intelligence APA Corp Fresh Tracks Therapeutics Inc Botanix Pharmaceuticals Ltd View all The biopharma is also planning to meet with shareholders in the fourth quarter of this year to seek liquidation and dissolution approval, after which all remaining cash will be distributed to shareholders. Liquidating distributions will be made based on outstanding shares (5,926,497 shares of common stock) as of 19 September 2023 at an aggregate amount of between $5m and $7m, or $0.84 and $1.17 per share. The news follows the amendment of its Asset Purchase Agreement ( APA ) with Botanix Pharmaceuticals and Botanix SB after the sales of sofpironium bromide , which the CEO of Fresh Tracks thought would strengthen their financial position at the time. The company’s assets under development include FRTX-02 for autoimmune diseases currently in Phase I stage 2, FRTX-10 (indicated for autoinflammatory diseases) and FRTX-03 in preclinical stages and another in discovery phase. Fresh Tracks has stated that although it has plans to shut down operations, it will change its mind if it receives an offer of superior value to its shareholders. Our signals coverage is powered by GlobalData’s Thematic Engine , which tags millions of data items across six alternative datasets — patents, jobs, deals, company filings, social media mentions and news — to themes, sectors and companies. These signals enhance our predictive capabilities, helping us to identify the most disruptive threats across each of the sectors we cover and the companies best placed to succeed.

Fresh Tracks Therapeutics still holds on to a sliver of hope that it won't have to dissolve, saying it would abandon dissolution plans if an offer of better value is received. Fresh Tracks Therapeutics is dissolving after spending months searching for alternatives, with the company’s board unanimously approving a liquidation plan. To lighten its load and wind down, the Colorado-based biotech is discontinuing all clinical and preclinical development programs and laying off most of its team by early October, according to a Sept. 19 release. In connection with the proposed liquidation—which still needs to be approved by shareholders—the board has let go of Fresh Tracks President and CEO Andrew Sklawer, effective Oct. 2, according to Securities and Exchange Commission documents. The company’s chief financial officer Albert Marchio II will take the top spot while also holding CFO and secretary along with director and chair of the board titles. Over the last few months, Fresh Tracks has searched for potential strategic alternatives including possible mergers, reverse mergers and acquisitions before reaching this conclusion. Over the summer, the autoimmune-focused biotech shut down R&D work to search for a potential buyer to overcome its limited resources.   Fresh Tracks also recently sold its rights to $168 million in biobucks back to Botanix Pharmaceuticals for anticholinergic drug sofpironium bromide in return for just $6.6 million upfront. Botanix had already bought the overall rights to the drug, which was in late-stage development for excessive underarm sweating, the previous year. With sofpironium bromide sold off, Fresh Track’s most advanced asset is FRTX-02, the first oral DYRK1A inhibitor to enter the clinic for an autoimmune condition. This spring, the biotech touted phase 1 results showing that the therapy is a “generally safe and well-tolerated, once-daily oral treatment for a broad range of autoimmune and inflammatory diseases.” However, all of Fresh Tracks’ efforts have come up short. The company now plans on holding a special shareholder meeting in the fourth quarter of this year to ask for approval of the liquidation and dissolution. Upon approval and the filing of the certificate of dissolution, Fresh Tracks plans to make liquidating distributions to shareholders in an aggregate amount between $5 million and $7 million, or 84 cents and $1.17 per share—figures that exclude money the company intends to save. Those estimates are based on 5,926,497 shares of outstanding common stock existing as of Sept. 19. However, the biotech added that the amount actually distributed to shareholders could “vary substantially” based on a number of factors. Before market close, the company’s stock stood at 58 cents per share. The liquidation, which was announced right after market close Sept. 19, sent the stock up to 91 cents as of 5 p.m. ET. With all that said, Fresh Tracks is still hanging on to a sliver of hope it can keep operating. If, before the dissolution is finalized, the biotech receives an offer that would provide superior value to shareholders, the liquidation and dissolution could be abandoned, the company said.