Nanogen, Another Biotech Goes Bankrupt (NGEN)

May 14, 2009 · Filed Under General 

Nanogen, Inc. (NGEN) is toast.  The company entered into an asset purchase agreement with The Elitech Group, a privately held diagnostics company, to acquire substantially all of the assets of Nanogen.  As part of the sale, Nanogen filed a voluntary petition under chapter 11.  Nanogen was supposed to be a developer of molecular and rapid diagnostic products.  After Chapter 11, this “was” is ever-important.

Elitech is considered a stalking horse bidder. The auction bidding procedures, if approved, would require interested parties to submit higher and better binding offers to acquire all of the Company’s assets within approximately 30 days, and, assuming any qualified overbids are submitted, an auction would be held within approximately one week of the bid deadline.

The filing supposedly has no effect the operations of Nanogen Advanced Diagnostics, Srl (NAD), the Company’s European affiliate located in Milan, Italy, or NAD’s creditors and lenders as NAD is not a party to the Company’s bankruptcy filing. Under the asset purchase agreement, Elitech will acquire ownership of NAD.he filing does not affect the operations of Nanogen Advanced Diagnostics, Srl (NAD), the Company’s European affiliate located in Milan, Italy, or NAD’s creditors and lenders as NAD is not a party to the Company’s bankruptcy filing. Under the asset purchase agreement, Elitech will acquire ownership of NAD.

Nanogen has agreed to sell substantially all of its assets to Elitech for a purchase price of $25.7 million, subject to approval.

In other words, Nanogen is toast.

JON C. OGG

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