Biopharmaceutical company Athenex and some of its subsidiaries voluntarily have filed Chapter 11 proceedings of the US Bankruptcy Code.
Filed in the US Bankruptcy Court for the Southern District of Texas, the proceedings will allow the company to pursue expedited sales process.
Athenex will sell its assets across its primary businesses of Athenex Pharmaceutical Division (APD), Orascovery, and Cell Therapy.
The company also intends to wind down its platform in an orderly fashion and seek to reduce its stakeholders’ value.
It expects the expedited process to be completed by 1 July this year.
Subject to court approval, Athenex has also signed an agreement with its secured lenders for the consensual use of cash collateral.
This will allow the company to satisfy certain obligations to its vendors for authorised goods received and services rendered after the filing.
Athenex also noted that it has sufficient resources to support the operations of Athenex Pharma Solutions (APS), which includes the manufacturing facility in Clarence, New York, and fulfil APD customer orders during the sale process.
Athenex CEO Dr Johnson Lau said: “Our team was successful in bringing tirbanibulin, through regulatory approvals, to the US market and a number of EU countries, as well as Taiwan.
“Unfortunately, our oral paclitaxel product candidate received a complete response letter from the US Food and Drug Administration, and this significant regulatory setback, coupled with challenging biotech markets and the difficult economic environment, put tremendous pressure on our ability to continue to fund our businesses.
“Our goal remains to identify purchasers who will continue development of the important drug candidates for which we have established a good foundation, and to bring them to market on behalf of medical practitioners and, most importantly, for patients.”