Epix Pharmaceuticals reported Monday that it has decided to shut down due to a lack of capital and its inability to obtain additional financing or consummate a strategic transaction.
The Lexington, Mass.-based company said it will conclude its operations and provide for an orderly liquidation of its assets.
Epix previously disclosed that it had sufficient cash to fund its operations through August. The company said it had been seeking a strategic alternative--including a financing, recapitalization, sale or disposition of one or more corporate assets, a potential merger or strategic business combination--with various third parties for several months.
In April, Epix sold its U.S., Canadian and Australian rights for the blood pool MR angiography agent, Vasovist, to Lantheus Medical Imaging for aggregate gross cash proceeds of $28 million.
"It is with great disappointment that the Company must proceed with this decision," said Elkan Gamzu, PhD, president and CEO of Epix. "Over the past several months we had taken several actions in an effort to improve the financial health of Epix, including the retirement of our $100 million aggregate principle amount of 3 percent convertible senior notes due 2024. Despite this and the efforts of our financial advisors who approached numerous third parties over the past several months, we were unable to obtain additional funding to continue our operations or consummate a strategic transaction."
As part of the wind-down of its operations, the company has terminated the employment of substantially all of its employees. Epix expects to retain its president and CEO Gamzu, for a short period of time to assist in the implementation of an orderly dissolution.