After burning through $220 million in a failed quest to gain approval for the blood substitute Polyheme, Northfield Laboratories has filed for Chapter 11 bankruptcy and plans to liquidate its assets.
"The decision to file was made after an exhaustive review of alternative options and is seen as the most favorable means for the company to continue its wind down process and liquidate its remaining assets for the benefit of its creditors and other parties," the company said in a statement Monday.
The 24-year-old biotech company was fatally injured by the FDA's recent decision to reject Northfield Labs' application for Polyheme, saying that the blood substitute's risks outweighed its benefits. The company listed assets of $11 million and liabilities of $1.84 million. The company said it plans to file a plan for liquidation soon, but would consider any other options that would deliver more money back to shareholders.
- read the report from Reuters