Advanced Tissue Sciences, Inc.

Client & Engagement Overview

  • Advanced Tissue Sciences, Inc. (“ATS”) was a leader in the field of tissue engineering, using patented technology to develop human-based tissue products for a variety of therapeutic applications prior to filing Chapter 11 Bankruptcy Protection​
  • ATS’ Board of Directors engaged Trefethen principals to evaluate strategic and financial alternatives for ATS and each of its tissue-engineering based product lines and development programs​.

Challenges

  • ATS had seven primary product lines, each with unique challenges, capital requirements, development timelines, and strategic partnerships.​
  • Two products generated positive cash flow, two products generated losses, and the remaining three products required considerable investments and development timelines to realize their potential​.​

Outcome

  • Identified a strategy of divesting certain products to raise cash for remaining products to create a new ATS​
  • Divested non-core assets to strategic buyers​.
  • Repaid creditors in full with interest​.
  • Completed an initial shareholder distribution of 2x stock price at the time of bankruptcy filing​
  • Created a liquidating trust to complete subsequent shareholder distributions from milestone and royalty payments from strategic partners.