ARCA Biopharma: Activist's Pressure Could Make This Into A Liquidation Play

May 03, 2022 11:50 AM ETARCA biopharma, Inc. (ABIO)5 Comments


  • Activist is pushing ARCA biopharma to stop new developments and return cash to shareholders.
  • Subsequently, management has started a strategic review.
  • The company's cash position (minus liabilities) stands at $3.19/share offering a potential 45% upside if things play out according to the activist's demands.

Researcher working in a biochemist laboratory

Luis Alvarez/DigitalVision via Getty Images

ARCA biopharma, Inc. (NASDAQ:ABIO) is a clinical-stage biopharma company that has been destroying shareholder value for decades and has recently failed its COVID treatment program. Around that time, an activist Cable Car Capital started aggressively buying

ABIO balance sheet

Q1'22 financial report

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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ABIO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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