Boston Business Journal -- Peptimune, Inc, a privately held biotechnology company in Cambrige, Mass., has filed under Chapter 7 of the bankruptcy code.
The filing came after the company failed to raise a proposed $35 million round of venture capital funding, an executive said. The company had shrunk to five employees from more than 50 last year as resources dwindled.
According to a filing in U.S. Bankruptcy Court for Boston, Peptimmune had $2.01 million in assets, mostly in the form of intellectual property. But Peptimmune had business debts totaling $2.17 million. The company had just $5,963.18 in cash on hand in two bank accounts.
Chapter 7 usually leads to liquidation.
Peptimmune was working on a generic version of the multiple sclerosis drug Copaxone, which is marketed by Israeli drug maker Teva Pharmaceuticals (Nasdaq: TEVA). Peptimmune’s latest trial on the drug candidate had yielded positive results. This asset will revert to a trustee and will likely be bought by another biotech or pharmaceutical company.
The company is being represented by law firm Ropes and Gray in the bankruptcy proceedings.