The CRO crowd tracking the fate of troubled Cetero Research over the past year has been treated to a series of twists and turns as the story developed. Slammed by the FDA for producing falsified data at its Houston lab--which the company blamed on a handful of errant employees--Cetero recently filed for bankruptcy protection while scouting for a buyer. As we reported earlier, the company's lenders have filed a "stalking horse" bid for the CRO, looking for a new buyer who can take over and move ahead.
Today, Pharmalot's Ed Silverman notes that a group of executives at the company are seeking court permission for a $1.3 million bonus on the sale of the company. As Pharmalot adds, it's quite common for key executives to look for bonuses when they steer a company through bankruptcy. They're the ones expected to hold it all together for the new owner.
Interestingly, Silverman also notes that some current and former execs at Cetero once worked for MDS Pharma Services, another CRO that had to defend its test results before it was sold. A hearing on the bankruptcy is slated for the end of the week.
- here's the story from Pharmalot