Gritstone Bio Explores Strategic Alternatives Amid Financial Strains and Mixed Cancer Vaccine Trial Results

Financial Strains:
Gritstone Bio faces financial challenges with $62 million in cash and $40 million in debt, potentially reaching the minimum liquidity threshold by year-end without additional funding.

Strategic Alternatives:
The company has engaged financial advisors to explore strategic options to maximize shareholder value due to financial constraints and mixed trial results.

Mixed Trial Results:
Interim Phase 2 data for GRANITE showed a 21% relative risk reduction in progression or death in the overall treated population and a 38% reduction in a subgroup with low circulating tumor DNA, but the results did not generate significant investor enthusiasm.

Stock Performance:
Gritstone Bio's stock was downgraded by JMP Securities from Market Outperform to Market Perform, leading to a 50% stock price drop following the release of the trial data.

Clinical Development:
Gritstone plans to review the PFS data with the FDA and discuss next steps, including a potential Phase 2 or 3 trial using ctDNA levels as eligibility criteria.