Dynogen Pharma files for Chapter 7 bankruptcy - Triangle Business Journal:

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The Waltham, Mass.-based company, which had raiserd $67 million in venture capital overa half-doze n years, was developing therapies for irritabls bowel syndrome and other digestive disorders. Dynogebn was owned by a group of prominentf venture capitalfirms – of Research Triangle Park among them. According to courty documents, Pappas held 8 percent of HealthCare Ventureof Cambridge, Mass., held a 20 percentf stake in the company; of Boston also held 20 percent; of Londonj held 13 percent; Abingworth Management of Waltham, Mass.
, held 11 percent; and of Waltham held 9 Dynogen also had a research operation in Durham that had employed about 15 In 2006, the company sold that operationh to Astellas Pharma. An investor in speaking on the conditionof anonymity, said the therapy the companyy was developing wasn't moving alongv as quickly as was hoped and that filinyg for liquidation seemed like the best course of action. The investort specifically cited the current economic environment as amajorf consideration, and said investors might have givenh the company more time in bettet conditions. In its bankrupcty filing, Dynogen reports asset of $18,393, consisting primarily of officee equipmentand furnishings.
The company’s liabilitiews total $10.6 million. They include $6.5 millionm in secured claims — $1.5 milliob for Arachnova Therapeuticsof $2.5 million for ; and $2.5 million for Oxford Financd Corp. of Alexandria, Va. Another though with no value assigned, is for Japan’sx Mitsibushi Pharma Co. The reason given is a potential claimto “certai intellectual property.” Liabilities also include $1.1 million in priority unsecured claimes — mostly wages and severance due employees. Accordinhg to the filing, Dynogen does not expect any moneu will be left after liquidation to paythosed claims. The largest unsecured nonpriority claim is from of Illinoizfor $1.
05 million for clinical tria services. Another large unsecured nonpriority claim iswith Ltd., a U.K. company that providesz manufacturing services. That claim is for $561,000. Total unsecurexd nonpriority claimsare $3 million. Auditor also is listed as beinggowed $410,000. This week’s bankruptcy filing follower a fiscal 2008 in which Dynogen said itlost $12.99 million on zero revenue. Expenses during that year includee $7 million on research and developmenytand $3 million on general and administrativs areas. Its interest expense was almost $2.9 Dynogen’s bankruptcy counsel is .
The firm, accordinhg to a filing, took the job for A year ago, Dynogen’s situation looked promising. According to a Boston Business Journal report atthe time, the company plannex to go public and give investors $98 million in stock in California’s Apex Bioventures (AMEX: But the deal fell through two monthx after it was announced. At the Dynogen CEO Lee Brettmabn attributed the demise of that transactiomn tomarket conditions.