SEATTLE, Dec. 11, 2017 /PRNewswire/ -- PhaseRx, Inc.
(NASDAQ: PZRX), a biopharmaceutical company developing mRNA
treatments for life-threatening inherited liver diseases in
children, today announced that it has elected to file a voluntary
petition under Chapter 11 of the Bankruptcy Code in the U.S.
Bankruptcy Court for the District of Delaware.
PhaseRx intends to continue to manage and operate its business
under the jurisdiction of the Bankruptcy Court and in accordance
with the applicable provisions of the Bankruptcy Code and the
orders of the Bankruptcy Court. The company is working with Cowen
and Company to review financial and strategic alternatives with the
goal of maximizing stockholder value. Potential alternatives, to be
explored further and evaluated during the review process, may
include a strategic collaboration with one or more parties, or the
licensing, sale or divestiture of some, or all, of the company's
proprietary technologies.
"The board and management team believe that the decision to
voluntarily file for Chapter 11 bankruptcy protection is in the
best interests of PhaseRx and its shareholders," said Robert W. Overell, Ph.D., president and chief
executive officer of PhaseRx. "The protection afforded under a
Chapter 11 filing enables us to continue to explore strategic
alternatives, including a potential merger transaction. During this
time we expect to continue to operate normally, and are thankful to
our dedicated employees whom we expect to remain focused on the
advancement of our programs."
About PhaseRx
PhaseRx is a biopharmaceutical company dedicated to developing
mRNA products for the treatment of children with inherited enzyme
deficiencies in the liver using intracellular enzyme replacement
therapy (i-ERT). PhaseRx's initial product development focus is on
urea cycle disorders, a group of rare genetic diseases that
generally present before the age of twelve and are characterized by
the body's inability to remove ammonia from the blood with
potentially devastating consequences for patients. The company's
i-ERT approach is enabled by its proprietary Hybrid mRNA
Technology™ platform. PhaseRx is headquartered in Seattle. For more information, please visit
www.phaserx.com.
Safe Harbor Statement
This press release contains "forward-looking statements." Such
statements may be preceded by the words "intends," "may," "will,"
"plans," "expects," "anticipates," "projects," "predicts,"
"estimates," "aims," "believes," "hopes," "potential" or similar
words. Forward-looking statements are not guarantees of future
performance, are based on certain assumptions and are subject to
various known and unknown risks and uncertainties, many of which
are beyond the company's control, and cannot be predicted or
quantified and consequently, actual results may differ materially
from those expressed or implied by such forward-looking statements.
Such risks and uncertainties include, without limitation, risks and
uncertainties associated with (i) the fact that the company may not
be successful in consummating any of the strategic alternatives it
is exploring; (ii) orders and decisions of the Bankruptcy Court;
(iii) any default on the company's credit facility, which could
impact its ability to continue as a going concern; (iv) the fact
that the company has incurred significant losses since its
inception and anticipates that it will continue to incur
significant losses for the foreseeable future, (v) the fact that
Nasdaq is seeking to delist our common stock from the Nasdaq stock
market (although the Company is appealing this decision), (vi) the
Company's recent decision to delay the development of its product
candidates, reduce its workforce and seek strategic alternatives,
(vii) the company being dependent on technologies it has licensed
and that it may need to license in the future, (viii) the fact that
substantial additional funding will be required to develop the
company's planned products, (ix) the fact that the company's Hybrid
mRNA Technology has not previously been tested beyond company
preclinical studies, and that mRNA-based drug development is
unproven, (x) the fact that all of the company's programs are in
preclinical studies or early-stage research and it is uncertain
that any company product candidates will receive regulatory
approval or be commercialized, and (xi) the company's ability to
adequately protect its proprietary technology from legal
challenges, infringement or alternative technologies and (xii) the biotechnology and pharmaceutical
industries being intensely competitive. More detailed information
about the company and the risk factors that may affect the
realization of forward-looking statements is set forth in the
company's filings with the Securities and Exchange Commission
(SEC), including the most recent annual report on Form 10-K and
its' quarterly reports on Form 10-Q. Investors and security holders
are urged to read these documents free of charge on the SEC's
website at http://www.sec.gov. The company assumes no obligation to
publicly update or revise its forward-looking statements as a
result of new information, future events or otherwise.
Contacts:
Corporate Communications Contact:
Jason Spark
Canale Communications
Senior Vice President
jason@canalecomm.com
619.849.6005
Investor Contact:
Robert H. Uhl
Westwicke Partners, LLC
Managing Director
robert.uhl@westwicke.com
858.356.5932
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SOURCE PhaseRx, Inc.