Omega Therapeutics plans to file for Chapter 11 bankruptcy within the next week47.
The company is laying off up to 17 employees as part of its restructuring4.
Omega had struck a deal with Novo Nordisk in January 2024 for an experimental obesity drug, worth up to $532 million in upfront, milestone, and royalty payments1.
Flagship Pioneering's "Pioneering Medicines" initiative is offering a $1.4 million bridge loan to help Omega continue operating4.
Pioneering Medicines is negotiating a stalking horse bid for Omega's assets, including the obesity program from the Novo Nordisk deal4.
Omega received a delisting notice from Nasdaq on January 29, 20254.
The company had halted development of its lead program, OTX-2002, for liver cancer and other solid tumors in November 20244.
As of September 30, 2024, Omega had $30.4 million in cash and cash equivalents4.
Several executives and directors have left the company in recent months, including former CEO Mahesh Karande4.
Omega is challenging a notice of default it received from Banc of California4.
Sources:
1. https://www.pharmavoice.com/news/omega-business-head-kaan-certel-novo-deal/719552/
4. https://www.biopharmadive.com/news/omega-therapeutics-bankruptcy-flagship-genetic-medicines/739175/
7. https://endpts.com/omega-therapeutics-nears-bankruptcy-filing-lays-off-workers/