May 31, 2016 9:14am
Initiates wind down after spending, financing and "blowing" the future along with terminating P2 Pathway Study following review of data
STEM also announced its decision to terminate the P2 Pathway Study in spinal cord injury following an in-depth review of data from the study and after obtaining the concurrence of the study’s Interim Analysis Data Monitoring Committee.
While the results showed overall improvement in patients treated with proprietary cells, the magnitude of the effect and the perceived trend of the effect over time did not justify continuing the study or exploring the variability in the initial patient observations, given the financial resources available.
As of May 31, 2016, STEM had cash and cash equivalents of approximately $5.5 M.
STEM cannot determine with certainty the amount of any liquidating distribution to its stockholders and it is possible that there will be no liquidating distribution to stockholders.
The amount of any cash distributed to its stockholders will depend upon, among other things, STEM’s current liquid assets offset by its known and unknown liabilities as well as operating expenses associated with the wind down.
The Bottom Line: IT was definitely predictable; one heck of a lot of insiders enriched themselves during their “ride”. This “event” should also foretell – who or other companies that are “in the trouble zone” of being next! Nobody ever wanted to say “Remember Tengion” but StemCells fall should heighten the issues of … expectation, spending and dependence on capital market access.
There will be more … I see 3 maybe 4 by year’s end.
Step to the front ranks, all those who have less than a year’s cash?