Gritstone Bio: Covid-Shot Maker Goes Bankrupt After Trailing Pfizer, Moderna

(Bloomberg) -- Gritstone Bio Inc., a vaccine developer that once touted its ability to make a next-generation Covid-19 shot, filed for Chapter 11 bankruptcy in Delaware Thursday. San Francisco to Shut 9% of Public Schools Amid Budget Woes Chicago's $1 Billion Budget Hole Exacerbated by School Turmoil Urban Heat Stress Is Another Disparity in the World's Most Unequal Nation Should Evictions Be Banned After Hurricanes and Climate Disasters? The Cablebus Transformed Commutes in Mexico City's Populous Outskirts The San Francisco-based biotechnology company has liabilities between $100 million and $500 million with estimated assets in the same range, according to court papers. The Nasdaq-listed firm is in talks with a party to make a stalking horse bid - one that sets the bar for any better offers - or act as a plan sponsor, according to a statement. Gritstone plans to present an agreement to the court as early as next week. It also intends to keep operating as usual and plans to keep advancing its clinical development programs during the financial restructuring process, the company said in a statement. The company was one of a slew of firms racing to develop vaccines during the pandemic. The stock's market value topped $1 billion in 2021 but saw its value slashed in half just a year later as Moderna Inc. along with the Pfizer Inc. and BioNTech SE partnership dominated the market for shots to quell the pandemic. Gritstone saw a brief resurgence in 2023 after the firm won a US government contract for as much as $433 million to conduct a trial of its next-generation Covid-19 vaccine. The company was sued in June over allegations that it misled investors about its ability to launch a large vaccine trial following study delays. The stock has slumped more than 90% this year. The case is Gritstone bio, Inc., number 24-12305, in the US Bankruptcy Court for the District of Delaware Lina Khan Is Just Getting Started (She Hopes) Musk Reveals Why He's Jumping Into Trump's Arms Why Is It So Hard for Clothing Resale Platforms to Make Money? China Is Playing Catch-Up to Elon Musk in Space How Jellycat Plushies Became a Gen Z Obsession ©2024 Bloomberg L.P.