Gritstone Bio Files for Chapter 11 Bankruptcy, Casting Uncertainty Over Cancer Vaccine Development

Bankruptcy Filing:
Gritstone Bio, a biotechnology company focused on developing cancer vaccines and immunotherapies, has filed for Chapter 11 bankruptcy in Delaware.

Financial Challenges:
The company has significant liabilities between $100 million and $500 million, with estimated assets in the same range, and an accumulated deficit of $723.3 million as of June 30, 2024.

Restructuring Process:
Gritstone intends to use the bankruptcy process to preserve value and support its ongoing strategic alternatives process, including discussions with a potential buyer or plan sponsor.

Continued Operations:
The company plans to operate in the ordinary course during the restructuring process and remains committed to advancing its clinical programs, including its neoantigen immunotherapy and infectious disease programs.

Impact on Research:
The bankruptcy filing casts uncertainty over the future of Gritstone's cancer vaccine development, although the company aims to continue research and development activities.

Financial Performance:
Gritstone has incurred significant operating losses and has not generated revenue from commercial product sales, relying on funding from private placements, public offerings, and grants.