Clarus Files for Chapter 11 Bankruptcy and Will Sell Testosterone Deficiency Drug Jatenzo
The Chapter 11 filing aims to ensure normal operations continue while on track to sell its assets, “primarily Jatenzo and related assets,” Clarus said in a press release. The company said it believes it has sufficient financial resources to meet its operational and financial obligations to patients, healthcare providers, suppliers and employees under the Chapter 11 process. Jatenzo is the only source income from Clarus, the company said in its Chapter 11 petition to the bankruptcy court. (Read the Chapter 11 filing below.)
“After thoroughly exploring our strategic options through a rigorous process led by Raymond James’ capital structure advisory team, and in light of the extremely challenging financial markets, the Clarus Board and its management team have unanimously concluded that a structured sales process is the best possible solution for Clarus and its stakeholders,” Clarus CEO Dr. Robert Dudley said in a press release. “We strongly believe that Jatenzo has the potential to be a valuable product for the treatment of men with testosterone deficiency and, with continued marketing efforts, to capture increasing market share over time. is no longer in a sustainable financial position to provide such efforts nor to remain a viable entity.
In its Chapter 11 filing, the company says it had assets of $48.9 million and liabilities of $62 million as of June 30, citing its quarterly report for that period.
If approved by the court, an auction procedure would allow binding bids to acquire substantially all of Clarus’ assets, which would be purchased free and clear of Clarus’ indebtedness and certain liabilities, the statement said. . In its Chapter 11 filing, Clarus said it was looking for a quick sale, by October 27.
“The debtors’ liquidity position dictates that the sale be completed on an accelerated basis,” the filing said. He says the company has already had discussions with potential buyers.
Last month, Clarus announced it was cutting its workforce by 40%, to “double digits”, and replacing chief financial officer Ric Peterson with chief administrative officer and former chief financial officer Steve Bourne.
Clarus, which went public in September 2021 through a merger with special-purpose acquisition firm Blue Water, has seen its stock plunge nearly 80% in the past month.