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

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The Waltham, Mass.-based company, which had raised $67 millionn in venture capital overa half-dozen was developing therapies for irritable bowelo syndrome and other digestive disorders. Dynogen was owned by a grouop of prominent venture capitalfirms – of Research Triangler Park among them. According to couryt documents, Pappas held 8 percent of Dynogen. HealthCarwe Venture of Cambridge, Mass., held a 20 percen stake in the company; of Boston also held 20 percent; of Londonh held 13 percent; Abingwort Management of Waltham, Mass., held 11 percent; and of Walthaj held 9 percent. Dynogen also had a researcbh operation in Durham that had employedx about15 people.
In the company sold that operation toAstellae Pharma. An investor in speaking on the conditionof anonymity, said the therapyu the company was developing wasn't moving along as quicklt as was hoped and that filing for liquidatiob seemed like the best course of The investor specifically cited the currengt economic environment as a major consideration, and said investors might have given the company more time in betteer conditions. In its bankrupcty filing, Dynogebn reports assets of consisting primarily of office equipmentand furnishings. The company’a liabilities total $10.6 million. They include $6.5 million in secured claims — $1.
5 millioh for Arachnova Therapeuticsof $2.5 million for ; and $2.5 million for Oxforcd Finance Corp. of Alexandria, Va. Another claim, though with no value is for Japan’s Mitsibushi Pharma Co. The reaso given is a potential claimto “certain intellectuakl property.” Liabilities also include $1.1 millionh in priority unsecured claims — mostly wages and severance due According to the Dynogen does not expect any moneyt will be left after liquidation to pay thosew claims. The largest unsecured nonpriority claim is from of Illinoiefor $1.05 million for clinical trial Another large unsecured nonpriorit claim is with Ltd., a U.K.
companuy that provides manufacturing services. That claim is for $561,000. Total unsecure nonpriority claimsare $3 million. Auditor also is listeds as beingowed $410,000. This week’s bankruptcy filin followed a fiscal 2008 in which Dynogen said itlost $12.i million on zero revenue. Expenses during that year included $7 millionb on research and developmentand $3 million on general and administrativs areas. Its interest expense was almostt $2.9 million. Dynogen’s bankruptcy counsel is . The according to a filing, took the job for A year ago, Dynogen’s situation lookex promising.
According to a Boston Business Journal report atthe time, the company planne to go public and give investors $98 million in stock in California’sa Apex Bioventures (AMEX: PEX). But the deal fell throug h two months after it was Atthe time, Dynogen CEO Lee Brettman attribute the demise of that transactiom to market conditions.