Mustang Bio closes Worcester facility, moves HQ to Waltham after reverse stock split
Photo | Courtesy of Mustang Bio
Mustang Bio has exited 377 Plantation St. in Worcester, moving its headquarters to Waltham.
Struggling life science firm Mustang Bio has completed a reverse stock split to avoid having its stock be delisted from the Nasdaq and closed a leased facility in Worcester, exiting the city after nearly a decade of operations.
The firm, which has dealt with a potential delisting from the the Nasdaq Capital Market and layoffs since the beginning of 2024, terminated its lease for 27,043 square feet of space at 377 Plantation St., where it had a presence since 2018. The company will now be headquartered out of a facility in Waltham, according to a Thursday press release announcing the exit and filings with the U.S. Securities and Exchange Commission.
The company will rely on academic partners and future contract manufacturing relationships to support its clinical trials.
The building at 377 Plantation St. is owned by Worcester City Campus Corp., a not-for-profit corporation used to support facility operations at nearby UMass Chan Medical School.
The termination of the lease is expected to save the company $2 million in cash expenses over the next 24 months, with an additional $1 million being raised by selling furniture and equipment at the site to AbbVie, the Delaware-based life science firm with operations at nearby 381 Plantation St. and 100 Research Drive.
Mustang Bio avoided potential delisting from Nasdaq on Jan 15., when it completed a 1-for-50 reverse stock split in order to bring its share price back above $1.
The company’s stock had been trading at 12 cents before the reverse split, which resulted in a new price of $5.55. Mustang Bio’s stock is trading around $1.92 as of Friday morning, well below its 52-week high of $74.50 and its lowest amount since the reverse split.
A firm focused on developing immunotherapies and gene therapies for cancers and other diseases, Mustang Bio was once seeing year-after-year growth, which fueled an expansion of its Worcester footprint.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.
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