Aradigm Corp. (NSDQ:ARDM) announced last week that it’s officially declaring bankruptcy.
Strapped for cash, the Calif.-based company resigned to filing for Chapter 11 protection after it couldn’t confirm funding from its primary investor and partner, Grifols.
“Aradigm intends to commence a process to sell substantially all of its assets to an interested party, subject to Bankruptcy Court approval. The proceeds from the sale would be distributed to satisfy the claims of its creditors, also subject to Court approval. Remaining assets, if any, would then be distributed to the company’s stockholders,” the company wrote in a statement.
Shares in the company plunged in January last year after the FDA denied its application for an inhaled drug designed to treat non-cystic fibrosis bronchiectasis patients with chronic lung infections.
The agency’s complete response letter highlighted a myriad of concerns with the initial application, including product quality and the company’s clinical data.
Aradigm noted in its latest press release that it “remains confident in the efficacy, safety and quality of Apulmiq (US)/Linhaliq (EMA),” and that the company plans to continue working toward the product’s approval.
