At the threshold of PhIII, Neurologix heads into bankruptcy
You can add Fort Lee, NJ-based Neurologix to the roster of biotechs to join the dear departed at the biotech graveyard.
Devoted to an unstable neuroscience field, Neurologix ($NRGX) left this world after almost 13 years in operation and filed for bankruptcy litigation with a mere $1.2 million in assets and close to $13 million in debt. The biotech was clearly going through its death throes over the past 6 months. Adrian Adams, an experienced exec with stints at Kos and Inspire, came on as the new CEO last September but was gone in less than two months. A few weeks ago CFO Marc Panoff hit the exits and Global Resource Partners was brought in to consult.
Just last summer Xconomy was helping to trumpet positive mid-stage data from Neurologix's lead program for Parkinson's, a gene therapy designed to balance GABA and glutamate. But Xconomy also zeroed in on the biotech's key concern: Raising cash. Its stock was worth little, but execs felt that a "crossover" study--giving the treatment to the patients in the control arm of the Phase II trial--could pave the way to a Phase III in late 2012.
"The biggest concern" among investors, company founder Michael Kaplitt told Xconomy, "is fear of the unknown." Fear has now been replaced by fate.
- here's the story from NorthJersey.com