Dive Brief:
- Philadelphia-based biotech Avax Technologies said it has reached a settlement with Cancer Treatment Centers of America (CTCA) to resolve its debt dispute.
- CTCA's $5.8 million judgment against Avax will be settled in exchange for 860,000 shares of Avex preferred Seris A stock and a single payment of $1.5 million cash.
- CTCA filed a breach of contract suit against Avax where it alleged the company defaulted on a loan made to the biotech company. The loan was to fund costs related to the development of experimental ovarian cancer therapies derived from tumors provided by CTCA patients.
Dive Insight:
Andrew Dahl, an Avax board member said in a prepared statement, "We are extremely happy to be able to move forward with the reorganization of Avax's balance sheet and look forward to re-commencing the important planned clinical trials at Avax. Our previous work with CTCA clinical programs has been very successful." The company's hospital in the Philadelphia area is the Eastern Regional Medical Center.