Third Harmonic Bio plans liquidation and asset sale

SAN FRANCISCO - Third Harmonic Bio, Inc. (NASDAQ:THRD), a clinical-stage biopharmaceutical company with a current market capitalization of $164.18 million, has announced its board of directors’ approval of a Plan of Liquidation and Dissolution (the "Plan of Dissolution") aimed at liquidating the company and distributing the remaining cash to shareholders. This decision follows a strategic review focused on maximizing shareholder value. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 40.87, indicating substantial cash reserves relative to its obligations.

The company’s annual meeting of stockholders, scheduled for June 5, 2025, will include a vote on the Plan of Dissolution. If approved, Third Harmonic Bio plans to file a Certificate of Dissolution in the third quarter of 2025, which will initiate the delisting of its shares from The Nasdaq Global Select Market and the cessation of its stock trading. The stock, currently trading at $3.64, has experienced significant volatility, with InvestingPro analysis showing a 71.38% decline over the past six months. InvestingPro subscribers have access to detailed financial health metrics and 8 additional ProTips that provide crucial insights for investors navigating this situation.

The company is also preparing to sell its assets, including the THB335 program, with the goal of completing all Phase 2 readiness activities by mid-year to optimize the value for shareholders. The initial distribution to shareholders is estimated to be between approximately $246.6 million and $255.4 million, or about $5.13 to $5.33 per share of common stock, expected after the filing of the Certificate of Dissolution. This represents a significant premium to the current trading price, with the stock currently trading at a price-to-book ratio of 0.58, according to InvestingPro data.

The total distribution amount, however, is subject to change based on various factors and does not account for potential proceeds from the asset sales. The board retains the right to abandon or terminate the Plan of Dissolution at any point before it becomes effective if deemed in the best interest of the company and its shareholders.

The company’s CEO, Natalie Holles, stated that the decision to liquidate and sell assets was made with consideration for the best interests of patients and shareholders, commending the team’s work and integrity throughout the process.

The proposed liquidation and dissolution will be further detailed in a proxy statement to be filed with the SEC, which will be made available to stockholders and contain important information about the dissolution process. Investors and stockholders are urged to read the proxy statement and other relevant documents once available.

This press release contains forward-looking statements regarding the dissolution and the expected outcomes, subject to risks and uncertainties that could cause actual results to differ materially. The company does not intend to update any forward-looking statements, whether as a result of new information or future developments.

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

In other recent news, Third Harmonic Bio announced the results of its Phase 1 clinical trial for THB335, aimed at treating chronic spontaneous urticaria (CSU). The trial demonstrated promising pharmacokinetics and pharmacodynamics, with dose-dependent reductions in serum tryptase, although safety concerns at higher doses were noted. As part of its strategic review process to enhance shareholder value, the company halted all non-THB335 related research and reduced its workforce by 50%. Third Harmonic Bio, which reported having approximately $285 million in cash at the end of 2024, anticipates a cash balance between $262 million and $267 million by mid-2025. Analysts from Stifel, Morgan Stanley, and Raymond James have downgraded the company’s stock rating due to uncertainties surrounding THB335’s development and future. Stifel reduced the stock rating to Hold with a target price of $5, while Morgan Stanley and Raymond James adjusted their ratings to Equalweight and Market Perform, respectively. The company plans to initiate a Phase 2 trial for THB335 by mid-2025, contingent on the outcomes of its ongoing strategic review and potential business combinations. Investors are advised to watch for updates on Third Harmonic Bio’s strategic plans and THB335’s clinical progress.

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