Athenex, Inc. Reaches Agreement With Lenders to Pursue Expedited Sales Process
May 14 2023 - 11:15AM
Athenex, Inc., (NASDAQ: ATNX) (“Athenex” or the “Company”), a
global biopharmaceutical company dedicated to the discovery,
development, and commercialization of novel therapies for the
treatment of cancer and related conditions, today announced that,
following an ongoing strategic review, it has reached agreement
with its lenders to move forward with an expedited sales process of
the Company’s assets across its primary businesses: Athenex
Pharmaceutical Division (“APD”), Orascovery, and Cell Therapy.
To best facilitate this process, Athenex and
certain of its subsidiaries filed voluntary proceedings under
Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy
Court for the Southern District of Texas. This will enable the
Company to divest its assets and wind down the Athenex platform in
an orderly fashion, while seeking to maximize value for its
stakeholders. The Company anticipates concluding the expedited
sales process by July 1, 2023, with the Chapter 11 cases continuing
thereafter to resolve claims.
Athenex has also reached an agreement with its
secured lenders, subject to court approval, for the consensual use
of cash collateral, which will enable the Company to, among other
things, satisfy certain obligations to its vendors for authorized
goods received and services rendered after the filing. Athenex
Pharma Solutions (“APS”), which includes the Company’s
manufacturing facility in Clarence, New York, is expected to
continue its operations for at least the next 90 days, to provide
commercial supply of tirbanibulin ointment. In addition, APD is
continuing to operate in the ordinary course and fill customer
orders with the ample inventory it has on hand.
Dr. Johnson Lau, Chief Executive Officer of
Athenex, on behalf of the management team and the Athenex Board of
Directors, said, “Throughout our history, we have sought to become
a leader in bringing innovative cancer treatments to the market and
improving patient health outcomes. Our team was successful in
bringing tirbanibulin, through regulatory approvals, to the U.S.
market and a number of EU countries, as well as Taiwan.
Unfortunately, our oral paclitaxel product candidate received a
complete response letter from the U.S. Food and Drug
Administration, and this significant regulatory setback, coupled
with challenging biotech markets and the difficult economic
environment, put tremendous pressure on our ability to continue to
fund our businesses.
“Over the past two years, we made considerable
progress in refocusing our business around our promising NKT cell
therapy platform, monetizing non-core assets to improve our balance
sheet and extending our cash runway, paying down $108 million of
debt, and undertaking a comprehensive review of strategic
alternatives to create value for our stakeholders. While we
explored every viable avenue to avoid this outcome, an orderly
sales process represents the best path forward at this time.
“Our goal remains to identify purchasers who
will continue development of the important drug candidates for
which we have established a good foundation, and to bring them to
market on behalf of medical practitioners and, most importantly,
for patients. We are incredibly thankful to our team for their
dedication to Athenex and will look to support our colleagues
through this transition period.”
Additional information regarding Athenex’s
Chapter 11 filing is available at https://dm.epiq11.com/athenex; by
calling the Company’s claims agent, Epiq, at 888-601-3094
(toll-free) or +1 503-433-8501 (international); or by sending an
email to Athenex@epiqglobal.com.
Pachulski Stang Ziehl & Jones LLP
is acting as Athenex's legal counsel. MERU is serving as its
financial advisor and Cassel Salpeter & Co., LLC as its
investment banker.
About Athenex, Inc.
Founded in 2003, Athenex, Inc. is a
clinical-stage biopharmaceutical company dedicated to becoming a
leader in the discovery, development, and commercialization of
next-generation cell therapy products for the treatment of
cancer. The Company’s mission is to become a leader in
bringing innovative cancer treatments to the market and to improve
patient health outcomes. In pursuit of this mission,
Athenex leverages years of experience in research and
development, clinical trials, regulatory standards, and
manufacturing. The Company is focused on its innovative Cell
Therapy platform, based on natural killer T (“NKT”) cells. For
more information, please visit www.athenex.com.
Forward-Looking Statements
Except for historical information, information
in this press release consists of forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve risks, uncertainties and assumptions that are
difficult to predict. Words such as “anticipate,” “could,”
“expect,” “may,” “seek,” “will,” and similar expressions, or the
use of future tense, identify forward-looking statements, but their
absence does not mean that a statement is not forward-looking.
Actual results might differ materially from those explicit or
implicit in the forward-looking statements. These forward-looking
statements are subject to a number of risks, uncertainties and
assumptions including: risks inherent in the bankruptcy process,
including the Company’s ability to obtain approval from the
Bankruptcy Court for motions or other requests made throughout the
course of the Chapter 11 proceedings; the Company’s liquidity and
financial position; the effects of the Chapter 11 proceedings on
the Company’s operations; the Company’s ability to continue to
operate its business during the pendency of the Chapter 11
proceedings, and the availability of operating capital during the
Chapter 11 proceedings; the Company’s ability to maintain
relationships with partners, suppliers, customers, employees,
regulatory authorities and other third parties; the length of time
that the Company will operate under Chapter 11 protection;
objections to the Company’s restructuring or liquidation process,
third-party motions, or other pleadings filed that could protract
the Chapter 11 proceedings; and Bankruptcy Court rulings in the
Chapter 11 proceedings and the outcome of the Chapter 11
proceedings, in general. You should not rely upon forward-looking
statements as predictions of future events. The Company undertakes
no obligation to update publicly any forward-looking statements for
any reason after the date of this press release to conform these
statements to actual results or to changes in its expectations,
except as required by law.
Investor Contacts
IR@athenex.com 716.427.2952
Media Contacts
Daniel Yunger / Wendi KopsickKekst
CNCAthenexMediaInquiries@kekstcnc.com
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