Third Harmonic Bio, which began operating in 2019, is a clinical-stage biotech operation focused on treating dermal, respiratory, and gastrointestinal inflammatory diseases. It was once worth about $1 billion.
The board of directors on April 10 unanimously approved the plan to liquidate assets and distribute remaining cash to shareholders. The board intends to seek stockholder approval June 5, according to the notice.
The treatment, which has not yet been approved for commercialization, was also expected to treat severe asthma and more diseases in the future, according to the company.
“Our management team and board of directors together have completed an efficient review of our strategic alternatives for maximizing the value of our assets and have determined that returning cash to shareholders and selling our assets, including THB335, is the best path forward,” said Chief Executive Officer Natalie Holles.
“We are proud of the work that our team has done over the past years to advance our science, to make tough decisions, and to act with integrity in the best interest of our patients and shareholders,” Holles added.
“If our stockholders do not approve the Plan of Dissolution, we would have to continue our business operations from a difficult position, in light of our announced intent to dissolve and liquidate,” the company wrote in the filing.
Third Harmonic Bio has stopped all work that isn’t related to its drug prospect for treating chronic spontaneous urticaria.
If the company’s stockholders approve the plan, the company intends to file a certificate of dissolution and delist its shares of common stock from the Nasdaq Global Select Market.
The company estimates the total distribution to shareholders will be $245.6 million to $259.8 million, or about $5.13 to $5.42 per share.
If dissolved, Third Harmonic Bio would be the San Francisco Bay Area’s second major biotech company loss this year.
