Hello BridgeBio, farewell Syros and Achilles

Sometimes there's no holding biotech back, and recent news of the sad demises of Syros and Achilles came just as a third group, BridgeBio Oncology, revealed plans to seek a public listing. That said, with the Nasdaq biotech index still 10% off its mid-2021 peak it would be premature to claim that biotech's financing worries are over.

BridgeBio's chosen method of listing – by reversing into a Spac (special-purpose acquisition company), rather than through a gold-standard initial public offering – might elicit scepticism. Several low-quality biotechs, including eFfector Therapeutics, Vincerx Pharma and Abpro have come to market by way of Spac, though there have been arguable successes, such as Immatics and Point.

BridgeBio Oncology is the cancer-focused unit of Bridge Bio, formally spun out last year with a focus on KRAS inhibition (BBO-11818 and BBO-8520) and the PI3Kα:RAS breaker BBO-10203.

Its Spac deal is with an entity called Helix Acquisition Corp II, which carries $196m in cash, and including a planned private $260m raise BridgeBio Oncology should begin life as a listed entity with a cash balance of around $450m. Of course this excludes any redemptions (cash withdrawals by current investors in the Spac who decide to exit before the deal closes), which can't be ruled out. 

Delistings

At the other end of the sentiment spectrum are Syros and Achilles Therapeutics, two biotechs that have thrown in the towel and decided to delist their stock from Nasdaq.

Syros had gone radio silent since its lead project, the RARα agonist tamibarotene, failed last year in acute myeloid leukaemia and myelodysplastic syndrome. In January the group revealed that it had received a Nasdaq deficiency notice based on its low share price, and now it has decided to leave the exchange, presumably after failing to find a way to meet listing requirements.

Achilles, meanwhile, was one of several companies focused on TILs to find the going here impossible, and last year it discontinued TIL work to focus on other cell therapies. Now reality has bitten hard, with the sale of some technology assets to AstraZeneca for $12m being followed by Nasdaq delisting and a vote to seek shareholder approval to have the business liquidated.