pick-uppath
- Humanigen (OTC:HGEN), once a favorite among Wall Street investors due to its prospects against COVID-19, filed for Chapter 11 bankruptcy in Wilmington, Delaware, Bloomberg Law reported Thursday, citing court papers.
- The company listed $521K worth of assets and over $44M in debt in its Chapter 11 petition filed in the U.S. Bankruptcy Court for the District of Delaware.
- The shares of the Burlingame, California-based biotech rose ~618% in 2020 as the company touted its lead asset, lenzilumab, for COVID-19 when the pandemic was raging.
- However, the FDA rejected the emergency use authorization for the monoclonal antibody to treat newly hospitalized COVID-19 patients, sending HGEN shares sharply lower in September 2021.
- J.P. Morgan downgraded the stock in reaction, and subsequently, the company ended initial work related to U.S. commercialization support for lenzilumab.