Listing liabilities of $88.1 million, Isolagen has become the latest biotech company to file for Chapter 11 bankruptcy protection. The developer, which makes anti-wrinkle products, listed no assets in the bankruptcy petition.
Isolagen's lenders agreed to provide $2.75 million in new financing, which it says it has to have in order to continue operating. The biotech says that some investors agreed to a debt-to-equity swap.
Isolagen CEO Declan Daly raised the prospect of bankruptcy at the end of March in an interview with the Philadelphia Business Journal. At the time the company had about a week's worth of operating capital.
"We remain hopeful, but it's tough out there for biotechs to raise money," Daly told the Journal. Isolagen recently filed a BLA for Isolagen Therapy, a wrinkle treatment that could also have applications for acne, burns and stretch marks.
- read the report from Reuters