Medical University of South Carolina spin-out Argolyn Bioscience has filed for bankruptcy following unimpressive preclinical results for its pain drug. The company, founded in 2002, was developing peptide drug candidates to treat psychosis, pain, and other diseases and disorders. Over the course of its operations the company raised $19 million. The bulk of that came from a 2007 $16 million round of venture capital, which was led by Intersouth Partners, Quaker BioVentures and Amgen Ventures.
"It was an early-stage drug development company and the company had a lead compound for pain," Suzanne Cantando, communications director for Argolyn investor Intersouth Partners, told the Wall Street Journal. "The preclinical studies showed that it just wasn't potent enough, given how crowded the pain market is." Cantando added that this is a rare case in which the economy can't be blamed for the company's failure. In its bankruptcy filing, Argolyn's listed $73,342 in assets and $452,811 in liabilities.