A local pharmaceutical company that experienced rising fiscal tides during federal evaluations of its drug candidates is currently navigating troubled waters with the help of a financial services firm.

Stock prices for Cempra Pharmaceuticals peaked at $45 per share in 2015 after the antibiotics producer completed patient enrollment for late-stage clinical trials involving a treatment for bacterial pneumonia.

Press releases from the company refer to that treatment as solithromycin, a next-generation ketolide antibiotic whose unique structure allows for a greater number of interactions with bacterial ribosomes.

The performance of solithromycin was so promising that it received expedited approval by the Food and Drug Administration, which classified the treatment as a qualified infectious disease product.

That classification was jeopardized in 2016 when an FDA advisory committee found that the risk of chemical-driven liver damage from the drug may not have been adequately parsed during clinical trials.

In the weeks that followed the circulation of those findings, the company consulted with a Fujifilm subsidiary in Japan, but its stock prices continued to fall before bottoming out at less than $3 per share.

According to a press release that was issued earlier this month, the services of Morgan Stanley have been retained by the company to lead a review of its strategic business operations.

The release also states that the company will use those services to “determine the best use of its significant cash resources and clinical programs to deliver value to patients and shareholders.”

With over $230 million in liquid assets and a workforce that has been cut by nearly 70 percent, the company may be in the process of putting itself up for sale as it attempts to make its products accessible to patients.

Image by Cempra Pharmaceuticals.

Related Stories
‹
On the Porch: Jordan Jones - Music is Life
This Week: Jordan Jones is a musician, educator, and business strategist from Durham, NC. Throughout his career, he has worked as a performing musician, studio engineer, and educator. He has played with many groups including the US Army National Guard, Royal Jelly, and Liquid Pleasure. Recently he marched in the 2026 Rose Bowl Parade in Pasadena,CA. He now focuses on helping creative spaces and entrepreneurs develop sustainable revenue models around their work. Outside of his professional work, Jordan enjoys bowling, fishing, painting, and spending time with his family.
Bottom Line With Brad: Investing vs Gambling
North Carolina Treasurer Brad Briner writes about the importance of not approaching the investing world with a gambler’s mindset.
Trump’s Halt of US Law Banning Business Bribes Abroad Raises Specter of a ‘Wild West’ of Dealmaking
The Foreign Corrupt Practices Act of 1977, or FCPA, prohibits people or companies operating in the U.S. from giving money or gifts to foreign officials to win or retain deals in those countries.
North Carolina Welcomes a Historic Visitor in Japan’s Prime Minister Kishida
Written by MAKIYA SEMINERA Japanese Prime Minister Fumio Kishida cemented economic links and cultural amity with North Carolina on Friday, following up time in Washington during his official U.S. visit by checking up on benchmark Japanese companies building in the ninth-most populous state and later planning to speak with students. In between, Kishida lunched at […]
Water Contamination Notice Issued For North Chatham
A water system malfunction in Chatham County has authorities urging residents to boil their water, according to the News and Observer.
Bacteria and Obesity, A Surprising Link
As a chemical engineer, I am naturally drawn to write columns about energy and manufacturing.  However, if you have been reading my columns for a while you will have noticed that I keep coming back to topics concerning the vital importance of maintaining a healthy population of beneficial bacteria within us, particularly within our gastrointestinal […]
›