NY pharma startup files for bankruptcy

Jan. 2, 2020

NPXe Ltd., a N.Y.-based startup focused on developing a kind of gas that protects brain tissue damage in patients with post-cardiac arrest syndrome (PCAS) has filed for chapter 11 bankruptcy protection.

One year ago, the company, alongside Mallinckrodt, launched a late-stage trial into the use of the gas. Although NPXe says that the gas has been shown to have a positive safety profile and will likely still be brought to market, the Wall Street Journal says that NPXe has faced supplier problems leading to the bankruptcy filing.

The company’s board has now agreed to a “structured sale process” and plans to sell off its assets. NPXe has continued to tout both the large market potential of its gas product, called Xenex, and the positive results of its phase 2 trials in order to attract potential buyers.

Read the Wall Street Journal report.