Eterna Therapeutics Completes Strategic Financial Restructuring with the Aim to Accelerate its Developmental Activities and Long-Term Success
Eterna Therapeutics (NASDAQ: ERNA) has completed a comprehensive financial restructuring to accelerate its developmental activities. The restructuring includes: discontinuing a longstanding lease, resulting in $72 million in savings and reducing monthly cash outflow by $700,000; reducing balance sheet debt; and securing $5 million in PIPE financing.
The company continues advancing ERNA-101, an iPSC-derived mesenchymal stem cells product targeting triple-negative breast cancer and platinum-resistant, TP53-mutant ovarian cancer. Eterna targets IND submissions by 2026.
Eterna Therapeutics (NASDAQ: ERNA) ha completato una ampia ristrutturazione finanziaria per accelerare le sue attività di sviluppo. La ristrutturazione include: l'interruzione di un contratto di locazione di lunga data, che comporta risparmi di 72 milioni di dollari e una riduzione del flusso di cassa mensile di 700.000 dollari; la riduzione del debito di bilancio; e il reperimento di 5 milioni di dollari in finanziamenti PIPE.
L'azienda continua a sviluppare ERNA-101, un prodotto di cellule staminali mesenchimali derivate da iPSC, mirato al cancro al seno triplo-negativo e al cancro ovarico resistente al platino, mutante TP53. Eterna prevede di presentare domande IND entro il 2026.
Eterna Therapeutics (NASDAQ: ERNA) ha completado una reestructuración financiera integral para acelerar sus actividades de desarrollo. La reestructuración incluye: la interrupción de un contrato de arrendamiento de larga data, que resulta en 72 millones de dólares en ahorros y una reducción del flujo de efectivo mensual de 700,000 dólares; la reducción de la deuda en el balance; y la obtención de 5 millones de dólares en financiamiento PIPE.
La compañía continúa avanzando con ERNA-101, un producto de células madre mesenquimatosas derivadas de iPSC que se dirige al cáncer de mama triple negativo y al cáncer de ovario resistente al platino, mutante TP53. Eterna tiene como objetivo realizar presentaciones de IND para 2026.
에터나 테라퓨틱스(NASDAQ: ERNA)는 개발 활동을 가속화하기 위한 포괄적인 재무 구조 조정을 완료했습니다. 재구성에는 오랫동안 지속된 임대 계약 종료가 포함되며, 이로 인해 7천2백만 달러의 절감 효과가 발생하고 월 현금 유출이 70만 달러 감소했습니다; 대차대조표 부채 감소; 그리고 5백만 달러의 PIPE 자금 확보가 포함됩니다.
회사는 Triple-negative 유방암 및 Platinum-resistant, TP53 변이 난소암을 목표로 하는 iPSC 유래 중간엽 줄기세포 제품인 ERNA-101을 계속 발전시키고 있습니다. 에터나는 2026년까지 IND 제출을 목표로 하고 있습니다.
Eterna Therapeutics (NASDAQ: ERNA) a complété une restructuration financière complète pour accélérer ses activités de développement. La restructuration comprend : la cessation d'un bail de longue date, entraînant des économies de 72 millions de dollars et réduisant le flux de trésorerie mensuel de 700 000 dollars; la réduction de la dette au bilan; et la sécurisation de 5 millions de dollars en financement PIPE.
L'entreprise continue de faire progresser ERNA-101, un produit de cellules souches mésenchymateuses dérivées d'iPSC ciblant le cancer du sein triple négatif et le cancer de l'ovaire résistant au platine, muté TP53. Eterna vise à soumettre des demandes IND d'ici 2026.
Eterna Therapeutics (NASDAQ: ERNA) hat eine umfassende finanzielle Umstrukturierung abgeschlossen, um seine Entwicklungsaktivitäten zu beschleunigen. Die Umstrukturierung umfasst: die Beendigung eines langjährigen Mietvertrags, was Einsparungen von 72 Millionen Dollar zur Folge hat und den monatlichen Cashflow um 700.000 Dollar verringert; die Reduzierung der Schuldenbilanz; und die Sicherstellung von 5 Millionen Dollar an PIPE-Finanzierung.
Das Unternehmen entwickelt weiterhin ERNA-101, ein aus iPSC abgeleitetes Produkt aus mesenchymalen Stammzellen, das auf dreifach negativen Brustkrebs und platinresistente, TP53-mutierte Eierstockkrebs abzielt. Eterna strebt an, bis 2026 IND-Anträge einzureichen.
- Achieved $72 million in savings from lease discontinuation
- Reduced monthly cash outflow by $700,000
- Secured $5 million in new PIPE financing
- Successfully reduced balance sheet debt
- IND submissions timeline extended to 2026
- Required additional financing through PIPE, potentially diluting existing shareholders
Insights
This financial restructuring marks a significant turnaround for Eterna Therapeutics, substantially improving its financial health through three key moves: lease termination saving
The restructuring strengthens the balance sheet and provides operational flexibility for their iPSC-derived cell therapy pipeline. While the
The restructuring enables Eterna to maintain focus on ERNA-101, their novel iPSC-derived mesenchymal stem cell therapy targeting aggressive cancers. The program's dual focus on triple-negative breast cancer and platinum-resistant ovarian cancer addresses significant unmet medical needs. The IL-7/IL-15 delivery mechanism represents an innovative approach in the cellular therapy space.
The strategic emphasis on off-the-shelf cellular therapies, coupled with academic partnerships, suggests a cost-effective development strategy. The 2026 IND submission timeline appears realistic given the complexity of cell therapy development and the now-improved financial position.
CAMBRIDGE, Mass., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Eterna Therapeutics Inc. (Nasdaq: ERNA) (“Eterna” or the “Company”) today announced the successful completion of a comprehensive financial restructuring of the Company with the aim to accelerate its developmental activities and long-term success. This restructuring includes reduction of its liabilities by discontinuing a longstanding lease, reducing the debt on its balance sheet and a new round of financing through a private investment in public equity (PIPE) investment.
As a part of this financial restructuring, the Company has significantly reduced its liability by discontinuing a longstanding lease, resulting in an estimated
“This financial restructuring clears a path for Eterna to execute our strategic mission to develop innovative off the-shelf cellular therapies internally and in collaboration with our academic partners with more focus and greater financial agility,” says Sanjeev Luther, President and CEO of Eterna Therapeutics.
Eterna continues to advance its lead therapeutic candidate ERNA-101, an induced pluripotent stem cells (iPSCs) derived mesenchymal stem cells (iMSCs) product designed to deliver IL-7/IL-15 selectively to tumors with an initial focus on triple-negative breast cancer (TNBC) and platinum-resistant, TP53-mutant ovarian cancer. With these ongoing initiatives and a stronger financial position, Eterna believes it’s well-positioned for IND-enabling studies and targets IND submissions by 2026.
About Eterna Therapeutics Inc.
Eterna Therapeutics is a publicly traded, preclinical-stage company focused on using cutting-edge tools to deliver highly innovative, effective, and safe off-the-shelf cell therapies for the treatment of advanced solid tumors, with an initial emphasis on triple-negative breast cancer (TNBC) and platinum-resistant, TP53-mutant ovarian cancer. The company is currently focused on advancing its lead product ERNA-101, an induced allogenic mesenchymal stem cell (iMSC) product, designed to selectively deliver the pro-inflammatory cytokines IL-7 and IL-15 to the tumor microenvironment (TME) in order to drive significant anti-tumor immunity. ERNA-101 is built on the company's in-licensed core technology, which utilizes a best-in-class approach to engineer allogenic iPSCs to express genes of interest and to efficiently differentiate these cells into iMSCs. For more information, please visit https://www.eternatx.com/.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, in some cases, can be identified by terms such as "believe," "may," "will," "estimate," "continue," "anticipate," "design," "intend," "expect," "could," "plan," "potential," "predict," "seek," "should," "would," "contemplate," "project," "target," "objective," or the negative version of these words and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Eterna's actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements in this press release, including, without limitation, risks and uncertainties related to: Eterna's ability to raise capital when and as needed to advance its product candidate, execute its business strategy and continue as a going concern; the performance ability of Eterna's in-licensed core technology; the outcome of collaborations with third-parties; and the evolution of Eterna's business model into a preclinical-stage company focused on the treatment of advanced solid tumors, rare diseases. Forward-looking statements are based upon Eterna's current expectations and involve assumptions that may never materialize or may prove to be incorrect. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. For a detailed description of Eterna's risks and uncertainties, you are encouraged to review its documents filed with the SEC including its recent filings on Form 8-K, Form 10-K and Form 10-Q. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they were made. Eterna does not undertake any obligation to update the forward-looking statements contained herein to reflect events that occur or circumstances that exist after the date hereof, except as required by applicable law.
Investor Relations Contact:
investors@eternatx.com
FAQ
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