Based: Cambridge, MA
Inspiration Biopharmaceuticals' name belies the state of affairs at the company. After the FDA placed a clinical hold on one of its lead programs this summer, its main backer Ipsen ($IPN) announced today that Inspiration is declaring bankruptcy and wants to peddle its assets to a third party through the courts. This is clearly a sad state of affairs for Inspiration.
Get out the shovels. Even though Inspiration is a going concern, the Chapter 11 bankruptcy is intended to facilitate the transfer of key assets to a new owner, according to Ipsen. And that sets the stage for the end of Inspiration as we know it, making the company quite qualified for Biotech Graveyard status.
Inspiration's bankruptcy comes after the company failed to inspire investors to pump $30 million into the hemophilia business last month, according to Ipsen, which had agreed to provide the Massachusetts company with $20 million on the condition that other investors commit the $30 million. Ipsen is the only senior secured debt holder at Inspiration, with $200 million in convertible bonds tied to its partnership with the developer.
Still, there could be hope for Inspiration's key assets to thrive under new ownership. Those assets include OBI-1, a recombinant porcine factor VIII for hemophilia A patients with inhibitors and IB1001, a recombinant factor IX therapy for hemophilia B. The prospects of the hemophilia B product dimmed in July after the FDA placed a clinical hold on development because patients developed antibodies against a protein in the therapy.
Ipsen braces for $153M write-off as troubled biotech partner declares bankruptcy
$215M Ipsen deal steers Inspiration Biopharma on an independent course
Ipsen-backed Inspiration Biopharma leaving California for Boston area