MA-based Dynogen files for bankrupcy

[industry_news]

A year after launching an unsuccessful IPO, Waltham, Massachusetts-based Dynogen said it will liquidate its assets and file for bankruptcy. The company, which had been developing treatments for irritable bowel syndrome and other digestive disorders, raised a total of $67 million during its six-year run. Documents filed by the company reveal it has just $18,393 in assets, most of which is office furniture and equipment, according the Boston Business Journal.
Dynogen has $10.6 million in liabilities, which includes about $1.1 million in unpaid salaries and severance owed to employees. Filings indicate there will not be enough money from the asset sale to pay those bills.
An anonymous Dynogen investor told the Boston Business Journal that the company's lead therapy "wasn't moving along as quickly as was hoped and that filing for liquidation seemed like the best course of action." The source also said the current economic condition contributed to the company's collapse.
- see the Boston Business Journal article
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