Catalyst Shareholders Say $60 Million Vertex Deal Could’ve Happened in 2019

Shortly after Catalyst Biosciences closed its deal with Vertex, shareholders have come forward expressing that it was too little, too late. Catalyst sold its preclinical complement drugs to Vertex for $60 million, following two rounds of layoffs and the shuttering of its hemophilia program. The shareholders, calling themselves JDS1, noted that they asked Catalyst to find strategic alternatives back in July 2019. This didn’t happen, and Catalyst’s share prices dropped from $8.32 to $1.14 in the past three years.

According to Kyle LaHucik, “So, JDS1 wants Catalyst to dole out the biotech’s cash and cash equivalents to stockholders, save for any money needed for ‘contingent liabilities and administrative expenses.’ That total figure, taking into account the asset sale proceeds, sits at $87 million. The company had cash reserves of $34.8 million at the end of March.”

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(Source: Endpoints News, May 27^th, 2022)