Sequoia Vaccines Files for Bankruptcy, Sells Intellectual Property
St. Louis-based vaccine startup Sequoia Vaccines has filed for Chapter 7 bankruptcy and will auction its intellectual property. The 25-year-old company had significant local investor backing.
Sequoia Vaccines, a 25-year-old biotechnology startup based in St. Louis, has filed for Chapter 7 bankruptcy and will sell its intellectual property through an auction. The company, which initially focused on drug development before specializing in vaccines, sought bankruptcy protection in July.
A bankruptcy auction held on Wednesday resulted in the sale of the company's intellectual property assets for $335,000. The winning bid came from VTH Holdings LLC, significantly exceeding the company's own valuation. Creditors are owed nearly $4.8 million, while the company reported total assets of $165,463 in its bankruptcy filing.
Founded in 2000 as Sequoia Sciences, the company initially pursued treatments for conditions like cystic fibrosis and MRSA. In 2017, Sequoia shifted its focus to vaccine development after receiving FDA fast-track designation for a vaccine targeting urinary tract infections caused by drug-resistant bacteria.
The expensive path to clinical validation and development of its novel vaccine ultimately depleted the company's funding. Sequoia Vaccines had a broad base of support, with over 220 shareholders, many of whom were local to the St. Louis area.