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Drug maker Oscient Pharmaceuticals Corp. filed for Chapter 11 bankruptcy protection yesterday, along with its wholly owned subsidiary, Guardian II Acquisition Corp. At the same time, Oscient is selling one of its two drugs, Factive, for more than $5 million.
In connection with the bankruptcy filing, Oscient says it will sell the assets related to Factive to a subsidiary of Cornerstone Therapeutics Inc. of North Carolina. Cornerstone will pay Oscient $5 million, as well as the value of Factive inventory at closing. In addition, Oscient will get adjusted royalty payments on Cornerstone’s sales of Factive for five years after closing the deal.
Oscient and Guardian are also looking for a buyer for the companies’ other drug, Antara, officials said.
Officials at Waltham-based Oscient (Nasdaq: OSCI) and Guardian say the two companies are looking for approval from the bankruptcy court to continue to operate normally during the bankruptcy case, and deliver products to customers as usual and without interruption.
The company said it has thousands of unsecured creditors to which it owes tens of millions of dollars. The biggest two are custodians for corporate debt totaling just more than $45 million.
Oscient also lists among creditors BB Bioventures LP of San Francisco, owed $6.5 million; Abbott of Illinois, owed $5.5 million; and Maverick Fund of Texas, owed $4.8 million.
Antara is a cardiovascular drug used as an additional treatment for high blood cholesterol and high triglycerides in combination with a prescribed diet. Factive is an antibiotic intended to treat acute bacterial exacerbations of chronic bronchitis and community-acquired pneumonia of mild to moderate severity.
Oscient also reports it received a letter from Nasdaq saying that its common stock will be de-listed from the Nasdaq Stock Market on July 21 because it failed to pay certain fees. The company won’t appeal the decision and expects its common stock will be de-listed, officials said.
In June, Oscient reported that it was discontinuing its sales force, eliminating 180 positions and ceasing direct sales of Antara and Factive.
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