BIND Therapeutics Inc. (NASDAQ: BIND) has sought bankruptcy court clearance to proceed with an auction of its assets. Pfizer Inc. (NYSE: PFE) has offered to snap up the majority of BIND’s assets for $20 million. But BIND will be open for more bids between now and July 22 to see if it can squeeze the most value out the asset sales transaction.
If BIND Therapeutics Inc. (NASDAQ:BIND) emerges as the successful bidder for BIND’s assets, it will gain control of assets including Accurin program. The transaction between BIND and Pfizer is expected to close in 3Q2016.
BIND’s Accurin program is a nano-engineering technology used to develop formulations of drugs to treat cancer. The technology specifically helps with creating more effective and safer medicines.
Terms of the auction agreement
The agreement that BIND Therapeutics Inc (NASDAQ: BIND) has reached with Pfizer is that Pfizer will pay for the assets it is acquiring in cash. Furthermore, besides the assets acquisition, Pfizer will take on certain of BIND’s contractual liabilities. However, those liabilities have not been specified.
Drug development collaborations
Back in 2013, Pfizer inked a $210 million agreement to use BIND’s technology for nanomedicines. Pfizer believed that the technology would help it create personalized cancer drugs.
BIND Therapeutics Inc (NASDAQ:BIND) also signed another deal valued at $180 million with Amgen, Inc. (NASDAQ: AMGN). Furthermore, the company inked a $200 million deal with AstraZeneca plc (ADR) (NYSE: AZN). The deal with Amgen was to allow the company to use BIND’s nanoparticle technology, especially Accurin, to create a version of its kinase inhibitor cancer drugs.
The deal that BIND inked with AstraZeneca paved way for kinase inhibitor called Accurin AZD2811. That was the second Accurin-based drug that BIND brought to clinical development after its internally developed candidate for cancer called BIND-014.
Disappointing clinical outcome BIND Therapeutics Inc. (NASDAQ: BIND)
Although BIND Therapeutics Inc. (NASDAQ: BIND) hoped to position itself in the nanomedicines space, its BIND-014 produced mixed results in clinical trials, thus triggering a wave of problems that led the company to file voluntary bankruptcy. The filing for bankruptcy also came after BIND’s lender Hercules Technology demand speedy repayment of its $15 million loan.
In bankruptcy, BIND is trying to monetize its assets, thus the agreement reached with Pfizer.