Catalyst Biosciences, Inc. Announces Dismissal of JDS1 Litigation

Rhea-AI Summary

Catalyst Biosciences, Inc. (NASDAQ: CBIO) has announced the dismissal of lawsuits by JDS1, LLC, a significant shareholder. This development allows the Board of Directors to discuss an initial capital distribution to shareholders, with details to follow. JDS1 has also agreed to a standstill and mutual releases, with Catalyst covering some of JDS1's expenses. Future announcements will specify the record date and distribution amounts. Catalyst continues to focus on protease therapeutics for medical needs, with promising assets undergoing clinical evaluation.

Positive

• Lawsuits dismissed by JDS1, LLC, improving legal stability.
• Board to discuss initial capital distribution for shareholders.
• Assets MarzAA and DalcA showing sustained efficacy in mid-stage trials.

Negative

• Uncertainties about the timing and amount of future cash distributions.
• Risk of obligations being greater than anticipated may impact financials.

Company to Announce a Record Date for Initial Distribution in Due Course

SOUTH SAN FRANCISCO, Calif., Aug. 19, 2022 (GLOBE NEWSWIRE) -- Catalyst Biosciences, Inc. (NASDAQ: CBIO) (“Catalyst,” the “Company” or “we”) today announced that JDS1, LLC, one of the Company’s stockholders, has dismissed its lawsuits against the Company.

“With the JDS1 litigation behind us, the Board of Directors will be meeting to determine the details of an initial distribution of capital, and we will communicate this information to shareholders shortly,” said Nassim Usman, Ph.D., Chief Executive Officer of Catalyst Biosciences.

In addition to dismissing its lawsuits against the Company, JDS1 and certain of its affiliates have agreed to a customary standstill and voting commitment, and the parties have entered into mutual releases. The Company has agreed to reimburse JDS1 for some of its expenses. The agreement between the Company and JDS1 will be filed today with the United States Securities and Exchange Commission.

Details regarding the distribution of capital to stockholders, including the record date, distribution date and amount, will be announced once they have been determined by the Board. Stockholders do not need to take any action at this time.

About Catalyst Biosciences
Catalyst is a biopharmaceutical company focused on protease therapeutics to address unmet medical needs in disorders of the complement and coagulation systems. After the transaction of its complement pipeline, Catalyst’s product candidates consist of the coagulation related assets marzeptacog alfa (activated) (“MarzAA”), dalcinonacog alfa (“DalcA”), and CB 2679d-GT. MarzAA is a SQ administered next generation engineered coagulation Factor VIIa (“FVIIa”) for the treatment of episodic bleeding and prophylaxis in subjects with rare bleeding disorders. DalcA is a next-generation SQ administered FIX. CB 2679d-GT is an AAV-based gene therapy construct harboring the DalcA sequence. Both MarzAA and DalcA have shown sustained efficacy and safety in mid-stage clinical trials and are available for partnering. CB 2679d-GT has obtained preclinical proof-of-concept and is also available for partnering.

Forward-Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. Forward-looking statements include, without limitation, those regarding the amount and timing of planned cash distributions, potential uses of and markets for MarzAA, DalcA and CB 2679-GT, and Catalyst’s plans to continue to explore strategic alternatives. Actual results or events could differ materially from the plans, intentions, expectations, and projections disclosed in the forward-looking statements. Various important factors could cause actual results or events to differ materially, including, but not limited to, the risks that Catalyst’s obligations and liabilities will be greater than anticipated, that Catalyst will not be able to identify strategic partners interested in MarzAA, DalcA, CB 2679-GT or any other transaction with the Company, and other risks described in the "Risk Factors" section of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 31, 2022, the Quarterly Report on Form 10-Q filed with the SEC on August 15, 2022, and in other filings filed from time to time with the SEC. The Company does not assume any obligation to update any forward-looking statements, except as required by law.

Contact Information
Trisha Colton
Catalyst Biosciences, Inc.
investors@catbio.com

FAQ

What is the latest news regarding Catalyst Biosciences (CBIO)?

Catalyst Biosciences announced that JDS1, LLC has dismissed its lawsuits against the company, allowing for potential capital distribution to shareholders.

When will Catalyst Biosciences announce the capital distribution details?

The details regarding the capital distribution, including record date and amounts, will be announced after the Board of Directors discusses them.

What are the key products in Catalyst Biosciences' pipeline?

Catalyst's key products include MarzAA and DalcA, which have shown efficacy in clinical trials, and CB 2679d-GT, a gene therapy construct.

What should shareholders know about the legal agreement with JDS1?

JDS1 has agreed to a standstill and mutual releases, with Catalyst reimbursing some expenses, improving relations for future business.

What risks does Catalyst Biosciences face according to the recent press release?

The company faces risks related to potential higher obligations than expected and challenges in finding strategic partners for its products.