Immunology biotech VBI Vaccines is veering dangerously close to the point of no return, with plans to file for bankruptcy and sell off its assets.
The Cambridge, Mass.-based company is restructuring and reviewing strategic alternatives, according to a July 30 press release. The biotech also hosts several research buildings in Canada and a research and manufacturing site in Israel.
VBI applied for and received an order from the Ontario Superior Court of Justice granting creditor protection while the company reorganizes. The order, made under the Companies’ Creditors Arrangement Act (CCAA), includes a debtor-in-possession loan.
The biotech decided to seek creditor protection after assessing its financial situation and considering all other alternatives. The biotech still retains responsibility over a potential sale process, which would be supervised by the CCAA Court.
VBI plans on seeking court approval of a sale and investment solicitation process, which could lead to one or multiple purchasers of its assets.
The biotech also intends to file for Chapter 15 bankruptcy in the U.S., which is done to recognize foreign bankruptcy procedures. The company plans to undergo a similar process in Israel.
VBI will also stop reporting as a public company, with Nasdaq expected to choose a date that the biotech will stop trading. The company’s stock plummeted 59% since market close yesterday, resting at a mere 22 cents as of 10:30 a.m. ET this morning.
The biotech has one FDA-approved product—a hepatitis B vaccine marketed as PreHevbrio. The biotech’s clinical pipeline includes assets for COVID-19, zika virus and glioblastoma, among others.
A little more than a year ago, VBI sent 30-35% of staff packing, paring down its pipeline to focus on PreHevbrio and another candidate called VBI-2601. The candidate is designed to be part of a functional cure regimen for patients with chronic hepatitis B. In July 2023, China-based Brii Biosciences paid $15 million to out-license the protein-based immunotherapeutic.