Wednesday, August 20, 2008

Spherics' IP assets going under the gavel

By Mass High Tech Staff

Spherics Inc. will place all of its pharmaceutical intellectual property on the block to be sold at a sealed bid auction on October 10, 2008, according to the accountant in charge of the sale.

Last month the Mansfield-based company auctioned off its physical equipment assets after the company filed for bankruptcy as it was unable to raise any more funds. Following that auction, the IP sale rights for the benefit of creditors was assigned to accountant Joseph F. Finn, Jr. of Wellesley Hills.

Spherics has developed systems based on its proprietary bioadhesive polymers, which will help drug compounds remain at the target absorptive site long enough to be effective. According to officials, the benefits of the company’s technologies include improving effectiveness, reducing side effects, providing more consistent drug levels and enhancing compliance.

Spherics was formed in 1997 with $200,000 in financing from the Slater Center for Biomedical Technology in Providence, R.I., which has since been paid. Since then, the company has received three rounds of venture capital investments totaling $40.4 million. In 2005, the company received a $2.5 million loan from MassDevelopment’s Emerging Technology Fund (ETF) to move its headquarters and research operations to Mansfield from Rhode Island.