Motif Bio outlines restructuring plans

Motif Bio is proposing to sell its main asset, the antibiotic iclampim, as part of a root and branch reorganisation of the company that will also see it reach a settlement with its secured lender, Hercules Capital.

The drug developer has been talking with the US regulator following queries over its phase III clinical trial.

And while Motif is confident there is a path to market for iclaprim, it will require a company with deeper pockets to take the putative treatment further.

“It would take several years to enroll and complete a HABP/VABP phase III trial and the cost is expected to be tens of millions of dollars,” said Graham Lumsden.

“We believe that the most efficient way to generate future value from iclaprim is for a partner or other entity with a lower cost of capital to complete the HABP/VABP Phase III trial and commercialise the asset globally.”

In a wide-ranging announcement, Motif said the US arm Motif BioSciences Inc, is expected to wind down its operations and “hire an advisor to facilitate the sale of its iclaprim and other assets”.

For more information on the restructuring, click here.

Story by ProactiveInvestors