Cardiovascular drug developer Cogentus files for Chapter 7
Menlo Park, Calif.-based Cogentus Pharmaceuticals has filed for Chapter 7 bankruptcy, despite $83 million raised in equity capital. At the time of the filing, the company reported $2.2 million in assets and liabilities totaling $17.2 million.
The company was just about to launch third-phase clinical trials on its lead drug candidate, an anti-platelet therapy used to treat cardiovascular disease. The trial was expected to enroll 4,000 patients in the U.S., South America, Canada and Europe.
Congentus’ backers included Keffi Group, Prospect Venture Partners, Pinnacle Ventures, Ridgeback Capital and Apothecary Capital. Three of these contributors, Keffi, Prospect and Ridgeback are each owed $500,000 from convertible debt investments, according to VentureWire. Prospect had a nearly 50 percent stake in the company. Another major creditor, Parexel International, is owed $13.9 million for clinical services its employees performed for the firm.
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