Troubled drug development company Immune Pharmaceuticals plans to focus on monetizing non-core assets in 2015, including selling or licensing neuropathic pain drug AmiKet.
The Cambridge, Massachusetts-based pharmaceutical developer experienced a year of transition in 2014, according to a Jan. 6 letter to shareholders. Immune was listed on the Nasdaq, raised more than $20 million in equity, reduced past liabilities and strengthened its cash position, reports CEO Daniel Teper in the letter, which was filed with the U.S. Securities and Exchange Commission.
If the company is able to sell or license AmiKet, the cash could accelerate development of the company's other programs. Immune is also looking for business partners or licensees to develop three oncology drugs that are in Phase II and III development.
Since inception in July 2010, Immune has been functioning with money raised through equity or debt financing. The company has incurred significant losses from operations, which it expects to continue for the foreseeable future, according to a quarterly SEC filing from Nov. As of Sept. 30, Immune had an accumulated deficit of $38.7 million. For the year up to that point, the company had a net loss of about $16.5 million and used about $10.5 million for operating expenses.
Immune has been operating with a $5 million revolving line of credit and a $1 million promissory note from an investor. The company's ability to continue as a going concern depends on its ability to raise revenue, which is not guaranteed, according to the November
Immune raised more than $7.5 million in a public stock offering in November, SEC filings show.
The company is currently developing a drug called Bertilimumab, which is in Phase II clinical trials and would treat Crohn's and Colitis.
For the previous edition of Turnaround Tuesday, see Struggling Medical Device Group Zynex Reaches Forbearance Deal.
For more troubled companies, see Mergers & Acquisitions Distressed Company Watch List.