Realm Therapeutics board considering multiple options for sale

Biopharmaceutical company Realm Therapeutics updated the market on the timing of its ongoing formal sale process on Thursday, as part of its previously-announced strategic review.

The AIM-traded firm had announced the start of a strategic review, including the evaluation of a potential sale of the company being conducted within the context of a formal sale process, on 17 September.

It said it was continuing to consider “many strategic initiatives” in parallel.

As part of the strategic review, Realm said it had received multiple indications of interest, including a potential sale of the company contemplated as a reverse merger, directly and through parties contacted by MTS Partners, acting as an advisor in the strategic review.

“From among the several non-binding proposals, the company has selected a short list of potential transactions and has advanced these to deal negotiation and due diligence,” Realm’s board said in its statement.

“The company anticipates providing a further update to shareholders in the first quarter of 2019.”

Realm said it was also considering a separate sale of its HOCl-related assets, which included the ‘Vashe’ royalty stream, the anti-itch hydrogel formerly marketed as ‘Aurstat’, and its HOCl-related intellectual property and other assets.

“The company is in advanced negotiations to sell these assets and expects to update shareholders as to progress early in 2019.

“As at 31 October, Realm had $20m in cash and cash equivalents, and short term investments.”

The board said it was continuing to assess all options available to it to maximise shareholder value.

It cautioned that there could be no certainty that any transaction would ensue from the formal sale process, whether as a reverse merger or through the ongoing efforts to monetize the HOCl assets.