Key points from article :
Athersys, a Cleveland-based biotech company, is facing significant financial difficulties after its ischemic stroke treatment, MultiStem, failed an interim analysis in its phase 3 MASTERS-2 clinical trial. The trial, which aimed to assess MultiStem’s effectiveness in improving stroke outcomes, revealed that the sample size of 300 patients was insufficient to achieve the primary endpoint. As a result, Athersys announced that patient enrolment would be paused while further analysis is conducted to determine if a larger sample is needed.
This setback compounds the company’s ongoing challenges, including massive layoffs, a failed trial in Japan, and the loss of a key funding partner. Despite these hurdles, Athersys has secured some financial relief through a memorandum of understanding with Healios for the global development and commercialization of MultiStem in treating acute respiratory distress syndrome (ARDS). This agreement will provide Athersys with $1.5 million and $4.5 million in near-term payments, along with up to $150 million in potential milestones and royalties in the future. However, the company has warned that without additional funding or strategic options, it may face bankruptcy and be forced to wind down operations.
