Tricida is looking at all of its options — not even two weeks after watching its stock nosedive.
In an announcement Wednesday afternoon, Tricida didn’t mince words.
“… the Board of Directors has authorized Tricida to initiate a review of strategic alternatives to maximize stakeholder value. This strategic review may include consideration of the sale of the Company and/or its assets.”
Tricida said that it is also investigating options to reduce its operating expenses, with plans to announce the changes sometime over the next 3-4 weeks.
There is no guarantee that a transaction would occur, or if it did it would be on “attractive terms,” Tricida said.
Tricida did not immediately respond to a query from Endpoint News.
The biotech has had a rough history over the past few years, ever since regulators handed Tricida and its lead drug veverimer, being investigated for chronic kidney disease, a complete response back in August 2020. At the time of the CRL, the biotech reported that it had runway into 2022 with cash, cash equivalents and investments worth $437 million.
Fast forward to May 2022, when Tricida announced an “administrative stop” on its VALOR-CKD trial in a plan to pitch to the FDA. And it was a risky move — a win would get the biotech back in the game with an approved drug. A fail would only spell Tricida’s end.
And as of last month, the biotech revealed that the VALOR-CKD trial did, in fact, fail to meet the primary endpoint, sending the biotech’s stock price spiraling down into penny stock territory. The company’s stock price $TCDA has fallen more than 98% since July 2020, now currently trading at under 30 cents a share.
CEO Gerrit Klaerner told investors on a call after the fateful readout that a longer duration would not have changed the results. He added that “a longer duration or a different trial would not answer it if you can’t find, basically, a patient population with significant metabolic acidosis. So I think this is the fundamental issue that we are facing.”
That setback also happened just four days after the biotech secured an agreement with Hercules Capital for a $125 million loan. However, the first tranche of $25 million was contingent only on positive data from the VALOR-CKD study, and future portions of the loan were linked to FDA regulatory milestones.
As of June 30, per SEC filings, the biotech had $98.7 million in cash and equivalents.