Alpharetta, GA-based AtheroGenics announced today that it has consented to the Involuntary Chapter 7 Petition filed against the Company on September 15, and has filed to convert the matter to a case under Chapter 11 of the United States Bankruptcy Code. "The filing became necessary as a result of the company's substantial debt burden, which created a significant impediment to its ability to effectively develop its primary asset, AGI-1067," the company said in the statement. AtheroGenics plans to sell the company and/or its key assets as part of the bankruptcy proceedings.
AtheroGenics has been developing AGI-1067, a promising diabetes drug currently in late-stage trials. So what will happen to the drug now? "We remain hopeful that AGI-1067 will ultimately continue to be developed, as we believe that it has real potential to be the first diabetes treatment that could reduce serious cardiovascular events. There remains a significant medical need and commercial opportunity for a drug with this profile," said CEO Russell Medford.
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