Back in the summer of 2013, Celgene ($CELG) lined up with a group of stalwarts to pump $33 million into the struggling regenerative medicine company Tengion, which had two programs in early-stage development. Today, the biotech powerhouse was listed as a creditor on an international roster of R&D groups and support companies that are getting stiffed in a Chapter 7 filing.
Over its 10-year history the Winston-Salem, NC-based biotech had raised close to $290 million for its work. But it's been in financial hot water for some time, scraping together the cash needed to start clinical studies of new treatments for restoring renal function in chronic kidney disease patients and an experimental Neo-Urinary Conduit system for cancer patients. Celgene put up a substantial portion of that cash, nabbing rights on the technology in the process.
But it wasn't enough to sustain the company for long. Tengion announced back in September that it was bringing in Jefferies to advise it on alternative strategies. At the time, the company had about $5 million in the bank. Its stock (OTCQB: TNGN) is trading at a penny per share.
Tengion filed for Chapter 7 in bankruptcy court in Delaware, where the biotech was registered. Its list of creditors include Brigham & Women's and Uppsala University Hospital, where the company was conducting research.