Flagship’s Omega Thera to file for bankruptcy

5 February 2025

Omega Therapeutics (Nasdaq: OMGA) has entered into a restructuring support agreement with Pioneering Medicines, an affiliate of its founding investor Flagship Pioneering.

The firm is preparing to file for bankruptcy in the coming days, and will sell its assets under a court-supervised process. Under the agreement, Pioneering will provide a $1.4 million bridge loan and will establish a minimum price for the upcoming auction.

Meanwhile, the company is disputing a prior notice of default from Banc of California, which had declared Omega’s debt immediately due and payable, seizing over $14.6 million in deposits. Omega maintains that it was not in default and has since had the bank’s liens on its assets removed.

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