💥New Chapter 11 Bankruptcy - Gritstone bio Inc.💥

Biotech files bankruptcy to pursue much needed plan sponsor or buyer.

On October 11, 2024, CA-based Gritstone Bio LLC ($GRTS) (the “debtor”) filed a chapter 11 bankruptcy petition in the District of Delaware (Judge Owens). The debtor is a clinical-stage biotech focused on developing vaccines for cancer and infectious diseases. “Clinical-stage” means that the debtor consumes capital, and lots of it, rather than generating it. Data from Phase II trials are “encouraging”! But it is going to cost much, much more to push them through “late-stage clinical development and commercialization,” according to the first-day declaration of CFO Vassiliki Economides. And so here they are, hoping that chapter 11 will serve as a “platform to attract and implement such needed investment.”