BioAtla, Inc. (BCAB) entered into a $40 million special purpose vehicle (SPV) transaction with GATC Health Corp. to advance its lead antibody‑drug conjugate, ozuriftamab vedotin (Oz‑V), into a Phase 3 study for second‑line oropharyngeal squamous cell carcinoma (OPSCC). The SPV will be owned 65 % by BioAtla and 35 % by Inversagen AI, a joint venture of GATC Health and Inversagen LLC. BioAtla will receive an initial $5 million cash infusion from Inversagen AI, with the remaining $35 million closing in the first quarter of 2026, coinciding with the start of the pivotal trial.
BioAtla’s Q3 2025 financials show a net loss of $15.8 million, up from $10.6 million in Q3 2024, and no revenue, reflecting the company’s heavy investment in clinical development and the loss of a prior collaboration. Cash reserves were low, creating a liquidity gap that the SPV financing directly addresses. The deal provides the capital needed to cover early trial expenses and sustain operations until the Phase 3 study begins.
The SPV structure is non‑dilutive; BioAtla retains full ownership of Oz‑V across all indications while sharing commercialization costs and milestone payments with Inversagen AI. This arrangement preserves equity value for existing shareholders and aligns the interests of the partner with the long‑term success of the drug. The $5 million upfront cash also gives BioAtla breathing room to manage day‑to‑day expenses without issuing additional shares.
Oz‑V targets ROR2, a receptor implicated in tumor progression and cellular senescence. The drug has received Fast Track designation from the FDA for recurrent or metastatic head‑and‑neck squamous cell carcinoma, underscoring its potential to address an unmet need in second‑line OPSCC. A successful Phase 3 trial could open a sizable market and accelerate regulatory approval.
CEO Jay M. Short highlighted the “creative, single‑asset financing structure” as a way to maximize equity value while advancing the pipeline. He emphasized that the SPV allows BioAtla to focus resources on clinical milestones without diluting shareholders, and he expressed confidence in the company’s CAB platform and the partnership with GATC Health.
The collaboration with GATC Health and Inversagen AI brings AI‑driven discovery capabilities to BioAtla’s Conditionally Active Biologics platform, creating a synergistic approach to target selection and drug development. The partnership also positions BioAtla to share commercialization costs and future milestone payments, reducing the financial burden of bringing Oz‑V to market.
Investors view the SPV as a positive step toward improving BioAtla’s liquidity profile, though they remain mindful of the company’s ongoing cash burn and the need for continued funding to reach regulatory milestones. The deal signals that BioAtla is actively managing its capital structure while pursuing a potentially transformative therapy for OPSCC.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.