CareMax Bankruptcy Could Mean 530 Employee Layoffs, If Deal Proceeds
The Miami-based senior care provider filed for Chapter 11 bankruptcy protection last month and has entered an agreement to sell to an affiliate of Revere Medical. If the deal goes through, 530 employees may be looking for new jobs. Other industry news includes: cancer therapy startup; AI in medicine; and more.
Modern Healthcare:
CareMax Layoffs Could Hit 530 Workers If Bankruptcy Sales Proceed
Senior care provider CareMax may lay off 530 employees if deals to sell its management services organization and clinical care center businesses are completed. Miami-based CareMax filed for Chapter 11 bankruptcy protection last month and announced it had entered an agreement with an affiliate of Revere Medical, a medical provider group, to sell its management services organization. Revere is backed by private equity company Kinderhook Industries, which purchased Steward Health Care's physician group in a $245 million deal in October. (DeSilva, 12/9)
Reuters:
Revance Agrees To Lower Take-Private Offer By Crown Labs
Crown Laboratories would buy the anti-wrinkle injection maker Revance Therapeutics at a roughly 50% lower price compared to an original agreement signed in August, the companies said on Monday, sending the latter's stock tumbling 20%. The lowered takeover price follows months of delay in the deal after Revance, which makes a rival to AbbVie's blockbuster product Botox, faced a dispute with its partner Teoxane. (12/9)
Reuters:
Relmada Discontinues Late-Stage Trials For Depression Drug, Explores Sale
Relmada Therapeutics (RLMD.O) said on Monday it would discontinue the two late-stage studies planned for the development of its depression drug and explore strategic alternatives including a sale. ... The stock fell more than 70% last week after the company said its depression drug, esmethadone, was "unlikely" to meet the main goal of a late-stage trial. The drug was being tested in patients with major depressive disorder as an adjunct to be used along with other approved antidepressants. (12/9)
Stat:
Tasca Therapeutics, An Oncology Startup, Launches With $52 Million
Tasca Therapeutics, the first startup created by new VC firm Cure Ventures, has raised $52 million to develop a new breed of cancer therapies. Tasca is developing small molecule treatments that target and bind to specific pockets on the pockmarked surface of proteins. The hope is that the medicines can lock onto cancer-associated proteins and kill the cancer cells. (DeAngelis, 12/10)
Bloomberg:
VC Firm Dimension Raises $500 Million To Bet On AI And Medicine
Dimension Capital, a venture firm targeting life sciences and technology startups, has raised $500 million just two years after debuting its first fund. The New York-based firm aims to tap into trends such as the growth of artificial intelligence and the rise of new ways to develop medicine — particularly the use of technology in the search for new drugs. (McBride, 12/9)
Modern Healthcare:
Cala Health Raises $50M From J&J Innovation, Ascension Ventures
Cala Health, a bioelectric medicine company, raised $50 million in a growth round, with participation from existing vendors including Johnson & Johnson Innovation, OSF Ventures and Ascension Ventures, among others. The round, which was co-led by Vertex Growth Fund and Nexus NeuroTech Ventures, will help the company accelerate efforts to bring its products to market. (12/9)
