Omega Therapeutics Faces Bankruptcy and Layoffs Despite Recent Novo Nordisk Obesity Deal

Omega Therapeutics plans to file for Chapter 11 bankruptcy within the next week47.

The company is laying off up to 17 employees as part of its restructuring4.

Omega had struck a deal with Novo Nordisk in January 2024 for an experimental obesity drug, worth up to $532 million in upfront, milestone, and royalty payments1.

Flagship Pioneering's "Pioneering Medicines" initiative is offering a $1.4 million bridge loan to help Omega continue operating4.

Pioneering Medicines is negotiating a stalking horse bid for Omega's assets, including the obesity program from the Novo Nordisk deal4.

Omega received a delisting notice from Nasdaq on January 29, 20254.

The company had halted development of its lead program, OTX-2002, for liver cancer and other solid tumors in November 20244.

As of September 30, 2024, Omega had $30.4 million in cash and cash equivalents4.

Several executives and directors have left the company in recent months, including former CEO Mahesh Karande4.

Omega is challenging a notice of default it received from Banc of California4.

Sources:

1. https://www.pharmavoice.com/news/omega-business-head-kaan-certel-novo-deal/719552/

4. https://www.biopharmadive.com/news/omega-therapeutics-bankruptcy-flagship-genetic-medicines/739175/

7. https://endpts.com/omega-therapeutics-nears-bankruptcy-filing-lays-off-workers/