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Friday, April 29, 2022

Zosano suspends migraine program, to explore alternatives

  Zosano Pharma Corporation (NASDAQ:ZSAN), a clinical-stage biopharmaceutical company, today provided a corporate update.

On April 14, 2022, the Food and Drug Administration granted Zosano a twelve-month extension to April 20, 2023 to resubmit its M207 New Drug Application. However, in order to preserve its capital and cash resources, Zosano has suspended its M207 program. Additionally, the company’s remaining feasibility study with a pharmaceutical partner is expected to conclude this quarter.

Zosano recently implemented an additional workforce reduction impacting approximately 40% of its remaining employees and suspended GMP manufacturing operations at its Fremont, California facility. The company has also suspended activities at its third-party contract manufacturing organizations related to the qualification of commercial manufacturing equipment. The company is currently evaluating its long-lived assets for the impairment related to these actions. As of April 26, 2022, the company had approximately $11.4 million of cash and cash equivalents.

Subsequent to its 35-to-1 reverse stock split, Zosano was notified by The Nasdaq Stock Market on April 27, 2022 that it has regained compliance with Listing Rule 5550(a)(2) because the closing bid price of the company’s common stock was $1 per share or greater from April 12, 2022 to April 26, 2022.

The company is continuing to work with SierraConstellation Partners, LLC as an independent financial advisor to assist in exploring financial and strategic alternatives to maximize value, which may include, but not be limited to, asset or equity sales, joint venture and partnership opportunities, and restructuring, amendment or refinancing of existing liabilities. However, there can be no assurances that the company will be able to successfully restructure its liabilities or complete any strategic transactions.

https://finance.yahoo.com/news/zosano-pharma-provides-corporate-200000467.html

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