Athenex Inc. ATNX, a biotech that specializes in cancer treatments, said late Sunday it has filed for Chapter 11 bankruptcy with an agreement with lenders to pursue an expedited sale of its assets. The company is expecting to complete the sale process by July 1 and to continue the Chapter 11 after that to resolve claims and wind down its business in an orderly fashion. Chief Executive Dr. Johnson Lau said the company had succeeded in bringing tirbanibulin, a treatment for actinic keratosis, or AK, through regulatory approvals, to the U.S. market and a number of EU countries, as well as Taiwan. AK is a rough, scaly patch on the skin caused by years of sun exposure. “Unfortunately, our oral paclitaxel product candidate received a complete response letter from the U.S. Food and Drug Administration, and this significant regulatory setback, coupled with challenging biotech markets and the difficult economic environment, put tremendous pressure on our ability to continue to fund our businesses,” he said in a statement. The company is now seeking a buyer who will continue to develop its drug candidates and bring them to market. The stock is down 53.5% premarket and has fallen 61% in the year to date, while the S&P 500 SPX has gained 7.4%.
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