Codiak BioSciences stock loses half its value after biotech files for bankruptcy, looks to sell off assets
Shares of Codiak BioSciences Inc. (CDAK) plummeted 50.3% in premarket trading Monday after the Massachusetts-based biopharmaceutical company said it field for bankruptcy, and is looking to selloff of its assets to maximize the company's value. "The Board and management team have thoroughly assessed all of our strategic options and believe that this structured process represents the best possible solution for Codiak, taking into account our financial needs and the stage of our clinical and research programs," the company said in a statement. In May 2022, the company had laid off 37% of its employees, leaving its workforce at 53 full-time employees, citing uncertainties related to its restructuring. The stock has rallied 10.7% year to date through Friday, while the iShares Biotechnology exchange-traded fund (IBB) has lost 4.1% and the S&P 500 has gained 3.4%.
-Tomi Kilgore
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March 27, 2023 08:08 ET (12:08 GMT)
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