ARCA Biopharma hints at future fundraising or merger move in latest earnings

WESTMINSTER — ARCA Biopharma Inc. (Nasdaq: ABIO) said it’s open to another funding round, merger or takeover offer Wednesday as it plans for a pivotal final clinical trial in its flagship drug.

The Westminster-based gene therapy company for heart conditions posted a loss of 76 cents per share, beating Wall Street estimates of a $1.30 per share loss, according to Seeking Alpha data. The company did not report revenue.

It posted a $1.156 million loss for the quarter, compared to $1.59 million in the same period last year.

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In its filings with the U.S. Securities and Exchange Commission, ARCA executives said its current cash reserves of $9.6 million would be enough to keep the company afloat until Q3 next year.

However, ARCA would need new funding to sustain itself through a critical Phase III trial of its flagship drug candidate Gencaro. The company didn’t say how much it would need to get through that last drug trial, but executives are looking at potential co-development or to-market agreements with other pharmaceutical companies or a possible “strategic combination or other strategic transactions.”

ARCA is planning to start that final trial in Q1 2020, pitting it in a race against time to find funds or a tie-up partner.

“If we are delayed in obtaining financing or are unable to complete a strategic transaction, we may discontinue our development activities on Gencaro or discontinue our operations,” the company said.