Tuesday, February 24, 2009

Dynogen files Chapter 7 bankruptcy

By Mass High Tech staff

Dynogen Pharmaceuticals Inc., a developer of treatment for irritable bowel syndrome and digestive disorders, has filed for Chapter 7 bankruptcy, according to documents filed with the U.S. Bankruptcy Court. The documents reveal Dynogen assets worth $18,393, with liabilities reaching $10.6 million.

Almost $15,000 of the company’s assets were made up of office furniture and supplies.

Dynogen’s liabilities include $6.5 million in secured claims and $1.1 million in unsecured priority claims, as well as $3 million in unsecured nonpriority claims.

The $6.5 million in secured claims are divided among Arachnova Therapeutics Ltd. with $1.5 million, Silicon Valley Bank with $2.5 million and Oxford Finance Corp. with $2.5 million.

The majority of Dynogen’s $1.1 million in unsecured claims relate to employee severance packages.

The Boston Business Journal cites a 20 percent ownership in Dynogen from HealthCare Venture of Cambridge, 20 percent ownership from Oxford Bioscience Partners of Boston, 13 percent stake from SV Life Sciences of London, 11 percent stake from Abingworth Management of Waltham, 9 percent ownership from Atlas Venture of Waltham and 8 percent ownership from Pappas Ventures of Research Triangle Park, N.C.

The company’s January 2008 plans to go public through a reverse merger with Apex Bioventures Acquisition Corp. fell through in April. The company then said in June that it planned to raise more than $30 million in private financing.