On March 12, 2023 Kinnate Biopharma Inc. ("Kinnate") reported that it is aware of the recent events involving Silicon Valley Bank ("SVB") culminating in its placement into receivership with the Federal Deposit Insurance Corporation (Press release, Kinnate Biopharma, MAR 12, 2023, View Source [SID1234628543]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

As of December 31, 2022, Kinnate had cash and cash equivalents and short-term and long-term investments of $240.6 million, of which $1.0 million was held in cash in deposit accounts at SVB (less than 1% of Kinnate’s cash and cash equivalents as of such date) and $239.6 million was held in accounts managed by third-party custodians. In addition, Kinnjiu Biopharma Inc. ("Kinnjiu"), now a wholly owned subsidiary of Kinnate, held $25.1 million in cash in deposit accounts at SVB. Additionally, Kinnate has $0.4 million of restricted cash held in a collateral account at SVB relating to the company’s office lease in San Diego.

Kinnate is seeking to minimize risk associated with the cash deposits held at SVB, including opening accounts with other banks, engaging a different asset manager and initiating transfers of funds from SVB to other banks.