Mustang Bio exits Worcester facility, sells assets to AbbVie

Published 27/02/2025, 22:14
Mustang Bio exits Worcester facility, sells assets to AbbVie

WALTHAM, Mass. - Mustang Bio , Inc. (NASDAQ:MBIO), a clinical-stage biopharmaceutical company with a current market capitalization of $5.56 million, has announced the sale of its Worcester manufacturing facility’s lease and certain assets to AbbVie (NYSE:ABBV) Bioresearch Center Inc. for $1.0 million. The transaction includes the divestment of furniture and equipment, as the company moves its headquarters to Waltham, Massachusetts. According to InvestingPro data, the company maintains more cash than debt on its balance sheet, though it’s quickly burning through available funds.

The exit from the Worcester site is expected to save Mustang approximately $2.0 million in cash expenses over the next 24 months, a crucial move given the company’s weak financial health score of 1.7 out of 10 on InvestingPro. Despite these changes, Mustang Bio plans to continue its clinical trials through partnerships with academic institutions and future contract manufacturing relationships. Investors seeking deeper insights into biotech companies’ financial health metrics can access 15+ additional ProTips and comprehensive analysis through InvestingPro.

Mustang Bio remains committed to advancing its portfolio, with a focus on initiating a clinical trial for MB-109, a combination therapy for the treatment of recurrent glioblastoma and high-grade astrocytomas, in the second half of 2025. MB-109 combines MB-108, an HSV-1 oncolytic virus, and MB-101, an IL13Rα2-targeted CAR-T cell therapy, both of which are designed to modify the tumor microenvironment and potentially enhance the effectiveness of the CAR-T cell therapy.

The company’s strategic moves come as it continues to develop treatments for difficult-to-treat cancers, leveraging partnerships with leading medical institutions to advance the development of CAR-T therapies.

The information provided in this article is based on a press release statement from Mustang Bio, Inc.

In other recent news, Mustang Bio, Inc. has made several significant announcements. The company received shareholder approval to issue over 5 million shares under certain outstanding warrants, aligning with Nasdaq’s Listing Rule 5635(d) requirements. This approval, obtained through a written consent, allows Mustang Bio to proceed with regulatory steps and support its capital-raising efforts. In another development, Mustang Bio entered into an agreement with AbbVie Bioresearch Center Inc. to sell certain assets and terminate its lease early, which is expected to save the company approximately $2 million in lease-related payments. The agreement includes the sale of furniture, fixtures, and equipment for $1 million.

Additionally, Mustang Bio secured shareholder consent to issue over 34 million shares of common stock linked to outstanding warrants, a move that is part of the company’s strategy to raise capital for ongoing research and development. The company also held its annual meeting of stockholders, where seven directors were re-elected, and KPMG LLP was ratified as the independent auditor for the fiscal year. These developments reflect Mustang Bio’s current strategic and financial initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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