'Do the right thing': Billionaire pushes struggling biotech to return cash to investors

03 Nov 2022
endpts.com
IPO
With a record number of biotechs now trading below cash amid a brutal public market downturn, many have sought ways to extend the cash runway — shuttering programs, laying off employees, or even raising money by selling shares at a discounted price — and stay afloat. In the case of Sensei Biotherapeutics, though, an investor believes the right thing to do would be to reduce the cash runway. Christian Angermayer, a German billionaire who holds an 11% stake in Sensei through his family office Apeiron Investment Group, is unequivocal in an open letter: STAT first reported on the letter, which Sensei posted in an SEC filing . He began backing Sensei (formerly Panacea), Angermayer writes, in its earliest stages, drawn to an immunophage platform that promises to generate one-of-a-kind I/O therapies, eventually becoming one of its largest shareholders. But the stock has been on a steady decline since the IPO in February 2021 , and plunged further after Sensei’s sole clinical program, SNS-301, disappointed in early-stage trials, leading to its eventual discontinuation. While the shares debuted at $19 per piece, they now trade below $1.50. Execs have since shifted focus to a range of preclinical programs, but Angermayer describes them as “fundamentally unrelated to the promising technology underpinning SNS-301.” He continues: In his letter, Angermayer notes that he’s attempted to discuss the matter privately with the board, but it hasn’t been receptive to his suggestions. By going public with his concerns and argument, he hopes to get more shareholders to voice their concerns and pressure the board to take action. “We appreciate that reducing cash runway is always uncomfortable and the natural resistance for a Board to having to put its investment thesis to the test of a shareholder vote of confidence. However, we are convinced that reconsolidating shareholder support for Sensei will be critical for its long-term success and survival,” he writes. “We want to emphasize that we do see value in the preclinical work Sensei is doing, however, we believe it can be done with significantly less cash than the Company has on hand at the moment.”
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