Bankruptcy threat looms as Quince runs out of options

Investor panic has poleaxed Quince Therapeutics share price, after a regulatory filing revealed the biotech's cash is running out and it may have to file for bankruptcy protection.

Shares in the South San Francisco-based company – already into penny share territory since Quince revealed last month that its lead drug for genetic disorder ataxia-telangiectasia (A-T) had failed a phase 3 trial – lost two-thirds of their value after the announcement.

In an update to the Securities & Exchange Commission (SEC) in the US, Quince said it ended 2025 with less than $6 million in cash, around $12 million in short-term investments, and more than $16 million outstanding on an unsecured line of credit with the European Investment Bank (EIB).

It appointed LifeSci Capital to help it explore "strategic alternatives" earlier this week, saying that could include "partnerships, joint ventures, mergers, acquisitions, licensing, or other…transactions."

At the end of January, Quince said that the 105-patient NEAT trial of its eDSP drug (dexamethasone sodium phosphate encapsulated in autologous erythrocytes) was unable to improve symptoms of A-T, an inherited autosomal recessive neurodegenerative and immunodeficiency disorder caused by mutations in the ATM gene, which has no approved treatments in any market.

eDSP is based on a well-known corticosteroid that is sometimes used to temporarily improve neurological function in A-T, but cannot be used long-term due to severe side effects. The cell-based formulation is designed to maintain the efficacy of the steroid while reducing or eliminating the significant adverse effects, allowing it to be used for longer.

Quince's plan was to develop eDSP for A-T initially, before running studies in more common indications like cystic fibrosis (CF), inflammatory bowel disease (IBD), and chronic obstructive pulmonary disease (COPD).

According to the SEC filing, the failed trial means the company has "no meaningful operations and the only opportunity for a return on an investment in our common stock is based on our ability to execute a reverse merger transaction."

It added: "We have no other current product candidates and do not have sufficient resources to pursue further research and development activities."

Quince (previously known as Cortexyme) is listed on the Nasdaq under the QNCX symbol, after completing a $75 million IPO in 2019. The company rebranded as Quince in 2022, and raised $22 million in a public offering last June that it said would fund operations through the second quarter of this year.