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The Departed: MHT tracks Greater Boston companies leaving, shutting down
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Drug developer Altus Pharmaceuticals Inc. is winding down its business and has engaged creditors and vendors to “maximize the value of its assets,” the company said in a regulatory filing late Monday.
In doing so, Altus has suspended its phase 2 clinical trial for a growth-hormone therapy and is eliminating “substantially all of its remaining employees” over the next six weeks.
Effected employees have been notified and will receive lump-sum severance payments.
The Cambridge-based company said the decision to shutter the business was finalized Sept. 11.
Altus (Nasdaq: ALTU) said $2.7 million in restructuring charges will be recognized in the third and fourth quarters.
In August, the struggling drug maker secured an option to pay $1.5 million for all of its preferred stock owned by Vertex Pharmaceuticals Inc.
The option, if exercised, would retire Vertex’s claims to some $2.3 million in accrued dividend payments, as well as $4.5 million in potential payments owed by Altus.
It is unclear whether Altus’ decision to “wind down” will trigger any payments in the Vertex agreement. As it stands, the deal says a move to liquidate would give Vertex a substantial claim to Altus’ cash prior to any payments to common stockholders.
In a recent regulatory filing, Altus said it would likely run out of cash by October. As of June 30 the company had $8.1 million in cash and cash equivalents on hand.
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