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Molecular Insight Pharma, Xconomy’s Neighbor, Faces Uncertain Future in Chapter 11

Xconomy Boston — 

Molecular Insight Pharmaceuticals, which shares a floor with Xconomy in the building at 101 Rogers Street, is in financial trouble.

The Cambridge, MA-based company, a developer of molecular medicines for cancer founded in 1997, has been in Chapter 11 since December 9. The company, which defaulted last year on a $150 million bond, has been unable to come to new terms with its bondholders. Since December 2009, the firm has more than halved its staff from 70 employees to about 30 workers today, said interim chief financial officer Mark Attarian.

Molecular Insight had total debts of $198.8 million and assets of $36.5 million, according to federal bankruptcy records. The lion’s share of the firm’s debt stems from the bonds it issued in November 2007 and accrued interest from them.

Nevertheless, Molecular Insight is trying to pull through this rough patch. There are at least two competing proposals to replenish the company’s coffers, including one from San Francisco-based private equity firm Savitr Capital and another from an informal group of Molecular Insight’s bondholders, according to court documents. Each of those parties is jockeying for a controlling stake the company in return for their money.

Still, Molecular Insight—which has four oncology products and one cardiac imaging drug at various stages of human clinical development—faces an uncertain future.

“We just don’t know who the new owner is going to be… [and] where will those new owners want to take the company,” Attarian said.

Attarian, a partner at the executive consulting firm Tatum, was part of a major leadership shakeup at Molecular Insight that the company announced at the time of its bankruptcy filing in December. That shakeup included the resignations of former CEO Daniel Peters and former CFO Charles Abdalian. Harry Stylli, a long-time board member, took the job of president and chief of restructuring. And Attarian was named to his interim post.

Also, the company said its common stock was de-listed from the NASDAQ in December and moved to the OTC Marketplace. The stock was trading around … Next Page »

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  • sox

    As a former employee – I have to say “time to pack it in!” MIP was the worst managed place I have ever seen. Complete waste of money to try to revive that place.

  • daniel

    As a carcinoid sufferer, I hope that the technology gets developed soon by someone.

  • jay

    i bet stuck price will be close to 2 dollers in a mounth its buy as much you can

  • tony

    Why would it be $2? Commom will be worthless if the bondhoders get it.

  • feeed


    You lost you’re job in a bad economy and you are pissed. But here is the deal, if 2 capital companys are trying to revive it with large amounts of cash then it is a deal. They WILL sell that cardiac product for no less than 40million cash. I am buying. love these 12 cents. Can not wait till sell this stock to people in June for 1.28 a shares!!!!!!!!! feeed

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