Turn out the lights, the party's over for San Diego-based Transdel Pharmaceuticals ($TDLP). The 13-year-old biotech was unable to find enough cash to launch a late-stage study of its lead program, forcing the remaining staffers to file for bankruptcy protection as it worked a deal to sell off its assets to Cardium Therapeutics for $4 million.
Provided the bankruptcy court signs off on the deal, Cardium will gain Transdel's Ketotransdel, a topical formulation made up of an approved therapy mixed with Transdel's special cream formula, which was designed to provide better relief. Data suggested that the treatment worked slightly better than a placebo.
"The proposed purchase of the business assets of Transdel Pharmaceuticals further broadens our technology and late stage product platform, and provides additional opportunities for potential commercialization, partnering or other monetization, now that our InnerCool Therapies business has been successfully sold to Philips Healthcare," said Cardium CEO Christopher J. Reinhard in a statement.
In addition to its financial woes the San Diego Union-Tribune notes that Transdel has seen some major upheavals on the staff recently. The biotech started scrambling to review "strategic alternatives" earlier in the year.