CLSD Stock Plummets After Company Files For Bankruptcy Protection
Synopsis
The biopharmaceutical company is seeking authorization to pursue an auction and sale process.
- If the proposed bidding process is approved, interested parties can submit binding offers to acquire Clearside’s assets in whole or in part.
- CEO George Lasezkay said that the company has “attractive assets,” including its SCS Injection Platform.
- The company has also filed several motions to enable normal operations during the process, it said.
Clearside Biomedical, Inc. (CLSD) said on Monday that it has filed a voluntary petition for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.
Shares of the company traded nearly 69% lower at the time of writing.
What Does The Company Intend?
The biopharmaceutical company is seeking authorization to pursue an auction and sale process. If the proposed bidding process is approved, interested parties can submit binding offers to acquire Clearside’s assets in whole or in part.
"Our Board of Directors and management team have thoroughly assessed all of our strategic options and believe that this Chapter 11 structured process represents the best possible option for Clearside and its stakeholders,” said CEO George Lasezkay.
Lasezkay also added that the company has “attractive assets,” including its SCS Injection Platform, which is a proven in-office, repeatable, non-surgical procedure for the targeted delivery of a wide variety of therapies to the macula, retina, or choroid to potentially preserve and improve vision in patients with sight-threatening eye diseases.
The company’s CLS-AX clinical development program is also up for sale. CLS-AX is being developed for the treatment of serious back-of-the-eye diseases, including neovascular age-related macular degeneration (wet AMD) and diabetic retinopathy.
The company has also filed several motions to enable normal operations during the process, it said.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around CLSD jumped from ‘bearish’ to ‘bullish’ territory over the past 24 hours while message volume stayed at ‘high’ levels.
CLSD stock is down by 94% this year and by about 95% over the past 12 months.
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