Washington-based biotech Eliem Therapeutics says it is looking for strategic alternatives, including an acquisition, merger, business combination or another transaction.
Eliem is now working with Leerink Partners to look for a potential transaction to maximize shareholder value. The biotech also announced that it would be pausing the development of its lead Kv7 program, a validated target for pain and epilepsy.
Kv7 channels are strongly regulated by various physiological and pharmacological signals. According to Eliem, previous first-generation Kv7.2/3 channel openers demonstrated potent efficacy but were withdrawn from the market due to significant safety issues.
Eliem, which has locations in the U.S. and R&D operations in Cambridge, UK, reported a preliminary unaudited cash amount of approximately $102.6 million including cash, cash equivalents, and investments in marketable securities as of June 30, 2023.
The news follows Eliem's decision earlier this year to lay off 55% of its workers, in an attempt to extend its cash runway into 2027. At the time, the biotech said it would focus on its now-paused Kv7.2/3 program and the development of its candidate ETX-123. The job cuts included its CEO, Bob Azelby along with the company's CFO and general counsel.
