Where was the oversight?
In my 7/16/09 blog, I wrote described company “x” in “How does one anticipate the pitfalls of sustainability” as I was left scratching my head about
yet another biotechnology Chapter 11 bankruptcy or should I have been?
I hate to dwell upon negativity but, I had thought they might emerge a smaller but less encumbered company. Dash that thought
- However, a bankruptcy court judge has now approved a deal for Cary, N.C.-based Cornerstone Therapeutics Inc to acquire the commercial rights to the antibiotic Factive from bankrupt Oscient Pharmaceuticals Corp. Cornerstone (Nasdaq: CRTX) will purchase the Factive assets for $5 M cash plus additional compensation for purchased inventory and royalties (Boston Business Journal);
- Oscient filed for Chapter 11 bankruptcy in July, after battling a series of financial and scientific woes as well as withdrawing their application with European regulators to market Factive as a therapy for certain strains of pneumonia and bronchitis;
- In May, they had also received word that its patents protecting its high-cholesterol medication, Antara, would be challenged by a generic drug maker.
The Bottom Line: What bothers me the most is that Oscient’s bankruptcy filing indicated thousands of unsecured creditors to which it owes tens of millions of dollars. Where was the oversight?
Categories: Independent Equity Research
