Altamira Therapeutics’ plan to sell subsidiary Zilentin and inner ear R&D work off in efforts to become a “pure play” RNA company have grown murky, as the proposed buyer has failed to come up with the money.
In October, Altamira said it was selling off its Zilentin subsidiary in an agreement worth up to $55 million biobucks. The buyer, identified only as a European family office, planned to acquire 90% of Zilentin’s share capital for an immediate cash consideration of $1 million, a proposal set to close Oct. 28. The buyer also was said to have a second cash payment of $25 million ready to go upon exercising an option to acquire the rest of Altamira’s legacy inner ear therapeutics. At the time, Altamira said it would receive $2 million in cash upfront from the buyer.
Yet it now appears that Altamira is still hunting for a buyer or partner to snap up its legacy assets, according to a Securities and Exchange Commission (SEC) filing. The proposed sale didn’t close because the buyer was unable to secure financing, according to the Jan. 27 filing. While the buyer is apparently still interested in the transaction, Altamira is also exploring options with other parties.
The projects up for sale include a phase 2 nasal spray for vertigo called AM-125, and two phase 3 intratympanic treatments for tinnitus and hearing loss called Keyzilen and Sonsuvi. The company is still looking to sell them off to focus on RNA efforts, where its work remains preclinical.
The SEC filing comes a few days after the company shared news about its over-the-counter nasal spray Bentrio, which it had hoped to sell off before the end of 2022. Already approved for patients with allergic rhinitis, top-line results found that Bentrio failed to hit its main goal among acute COVID-19 patients.
After the data share, Altamira’s stock dropped from $4.98 per share at market close Monday to $3.53 Tuesday morning. The company’s stock continued its decline today, resting at $2.80 as of 10:45 a.m. ET.