Molecular Insight Announces Ch. 11, Restructuring
Cambridge, MA-based drug developer Molecular Insight Pharmaceuticals (NASDAQ: MIPI) announced today that it has filed for chapter 11 bankruptcy protection, and will reorganize with a $45 million financing commitment from private investment firm Savitr Capital. The investment comes as common stock at $0.45 per share, and is subject to Molecular Insight emerging from the corporate restructuring by March 31, 2011. As part of the bankruptcy filing, chief executive Daniel Peters and Charles Abdalian, senior vice president and chief financial officer, have resigned from Molecular Insight. The biotech company has five clinical-stage drug candidates in development, and is focused on the field of oncology.