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.