Vincerx Pharma has found a fast fix for the uncertainty over its future. Recently left in limbo by the collapse of its reverse merger, the antibody-drug conjugate (ADC) developer has taken a step toward a new deal with an artificial intelligence company.
California-based Vincerx began looking into strategic alternatives late last year after recognizing the need for an escape route in the event its fundraising efforts floundered. With its cash reserves set to run dry in early 2025, the biotech agreed a reverse merger with fellow ADC developer Oqory in the final days of last year. Yet, the deal fell apart late last month.
Vincerx had $3.9 million in cash when the Oqory merger imploded and predicted its cash runway would run into late in the second quarter. Needing to move fast, the biotech has entered into a non-binding letter of intent less than three weeks after disclosing the collapse of the Oqory merger.
The letter puts Vincerx on course to merge with QumulusAI, a provider of AI computing infrastructure. If everything goes to plan, a subsidiary of Vincerx will merge into QumulusAI. The proposed transaction values QumulusAI at around $285 million and Vincerx at approximately $15 million. Vincerx will own 5% of the combined company, which will have a board and management team shaped by QumulusAI.
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The letter of intent provides some terms of the merger but the companies still need to iron out details. Both sides have agreed to a 30-day exclusivity period to negotiate and enter into a definitive business combination agreement.
If consummated, the deal will see Vincerx’s Nasdaq listing taken over by a company with no presence in drug development. Raquel Izumi, Ph.D., acting CEO at Vincerx, said the biotech “will continue pursuing efforts to monetize our remaining assets.”