Two weeks ago, when Repros Therapeutics suspended late stage trials of Proellex after researchers saw signs of spiking liver enzymes in patients, the company said it would have to keep a close eye on its financials. But it didn't take long for the other shoe to drop. This morning Repros revealed that its cash reserves are running out and that it will have to either file for bankruptcy or dissolve the company if it can't quickly lay its hands on some operating cash.
In the company's quarterly report, Repros says that salaries have been cut in half., As of August 14 the developer had $2.7 million of cash on hand while accounts payable and accrued expenses were "significantly higher than $7.5 million." Some of its vendors have dropped the company and Repros has hired a law firm that specializes in bankruptcy.
Aside from the clinical hold on Proellex, a drug intended to treat uterine fibroids, Repros is also facing a class action claim that it deliberately mislead investors. And its share price took another hit overnight, with it stock price dropping 27 percent to 84 cents.
- read the Repros release
- here's the Reuters piece