Humanigen is running out of options as talks over a reverse merger have collapsed and, with efforts to find another deal or raise funding failing, the biotech is considering filing for bankruptcy in the third quarter, FierceBiotech.com reported. The New Jersey-based biotech has been on the ropes since its anti-human GM-CSF monoclonal antibody failed to improve outcomes in hospitalized COVID-19 patients last year. Humanigen was already reeling from the FDA’s rejection of its request for emergency use authorization and the stock has stayed firmly rooted in penny stock territory ever since the late-phase flop. By the end of March, Humanigen was down to its last $3.1 million but a non-binding letter of intent with a private biopharma company presented an exit strategy. Humanigen was in exclusive negotiations over a stock-for-stock deal and seeking external financing in connection with the reverse merger.
