Athenex (NASDAQ:ATNX) stock is falling on Monday after the company announced an agreement with lenders to pursue an expedited sales process.
According to a press release from the company, this agreement has the company expecting to complete the process by July 1, 2023. The company says this will see it “divest its assets and wind down the Athenex platform in an orderly fashion.”
The company’s asset sale will focus on its primary businesses. That includes the Athenex Pharmaceutical Division, Orascovery and Cell Therapy businesses. The goal of this sale is to maximize value for the company’s stakeholders.
Dr. Johnson Lau, CEO of Athenex, explained the company’s troubles in a news release:
“Unfortunately, our oral paclitaxel product candidate received a complete response letter from the U.S. Food and Drug Administration, and this significant regulatory setback, coupled with challenging biotech markets and the difficult economic environment, put tremendous pressure on our ability to continue to fund our businesses.”
What This Means for ATNX Stock
Considering its asset sale plans, as well as the fact that Athenex is going through a bankruptcy filing, investors shouldn’t expect ATNX stock to exist over the long term. That also helps explain why the stock is falling today.
The asset sale news brings with it heavy trading of ATNX stock as investors sell shares. As of this writing, more than 430,000 shares have changed hands. That’s well above the company’s daily average trading volume of about 101,000 shares.
ATNX stock is down 53.6% as of Monday morning.
Investors can find more of the latest stock market news below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.