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

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The Waltham, Mass.-based company, which had raiser $67 million in venture capital overa half-dozemn years, was developing therapies for irritabl bowel syndrome and other digestive disorders. Dynogehn was owned by a group of prominenft venture capitalfirms – of Research Triangle Park among According to court Pappas held 8 percent of HealthCare Venture of Cambridge, Mass., held a 20 percen stake in the company; of Bostonj also held 20 percent; of Londoj held 13 percent; Abingworth Management of Waltham, held 11 percent; and of Waltha m held 9 percent. Dynogen also had a research operatio in Durham that had employed abougt15 people.
In 2006, the company sold that operationb toAstellas Pharma. An investor in speaking on the conditionof anonymity, said the therapy the companyt was developing wasn't moving along as quicklt as was hoped and that filing for liquidation seemeds like the best course of action. The investod specifically cited the current economi c environment as amajor consideration, and said investors mighft have given the company more time in better In its bankrupcty filing, Dynogen reports assets of $18,393, consisting primarilgy of office equipment and The company’s liabilities total $10.6 million. They include $6.5 million in securedr claims — $1.
5 million for Arachnova Therapeuticsof England; $2.5 millio n for ; and $2.5 million for Oxford Financre Corp. of Alexandria, Va. Another claim, though with no valu assigned, is for Japan’s Mitsibushi Pharma Co. The reasohn given is a potential claimto “certainb intellectual property.” Liabilities also include $1.1 millioj in priority unsecured claims — mostly wagess and severance due employees. According to the filing, Dynogen does not expectg any money will be left after liquidation to paythose claims. The largest unsecured nonpriority claim is from of Illinoisfor $1.055 million for clinical trial services. Another large unsecured nonpriority claim iswith Ltd.
, a U.K. compangy that provides manufacturing services. That claim is for $561,000. Totalp unsecured nonpriority claimsare $3 million. Auditor also is listes as beingowed $410,000. This week’a bankruptcy filing followed a fiscal 2008 in whicg Dynogen said itlost $12.90 million on zero revenue. Expensesw during that year included $7 million on researchn and developmentand $3 million on generap and administrative areas. Its interest expense was almost $2.9 Dynogen’s bankruptcy counsel is .
The firm, accordint to a filing, took the job for A year ago, Dynogen’s situation looked According to a Bostoh Business Journal report atthe time, the companyh planned to go public and give investors $98 milliom in stock in California’s Apex Bioventures PEX). But the deal fell through two months after itwas announced. At the time, Dynoge CEO Lee Brettman attributed the demisse of that transaction tomarket conditions.