Biotech Values

[DewDiligence]

INGN Files for Bankruptcy

[The executive officers of this company ought to be serving long jail sentences for fraud, IMO. What made INGN especially pernicious is that the scam was executed cleverly enough to fool some biotech investors (mainly on SI) who generally know what they are doing.

Given the bankruptcy filing, I’m removing INGN from the “Avoid” list of companies in my iHub profile, where it had resided for the past few years alongside such gems as HEB and Pipex (now AEN).]

http://finance.yahoo.com/news/Introgen-Files-Voluntary-bw-13738367.html

›Introgen Files Voluntary Chapter 11 Petition to Facilitate Restructuring

Wednesday December 3, 2008, 4:30 pm EST

AUSTIN, Texas--(BUSINESS WIRE)--As part of its ongoing restructuring, Introgen Therapeutics, Inc. (NASDAQ: INGN ), today announced that the company has elected to file Chapter 11 petitions in the U.S. Bankruptcy Court, Western District of Texas. Introgen expects that the Chapter 11 process will facilitate the implementation of the company’s recently announced strategic reorganization. As part of this filing, the company is seeking Court approval of a sales procedures motion that will allow Introgen to market its therapeutic portfolio and other assets to prospective buyers. Introgen expects to continue core activities pertaining to each of its business units during the reorganization process and expects to emerge from Chapter 11 during 2009.

“In light of our current financial state and recent market conditions, the company believes today’s actions represent the wisest alternative for our shareholders, creditors and other stakeholders,” said David Enloe, Introgen’s president and CEO. “We are very optimistic about the promise of our contract manufacturing business and will continue to focus on growing our customer base in this area. At the same time, we will continue to work with our investment banking and other advisors to explore financial alternatives for our therapeutic portfolio.”

Last week, Introgen announced that it had strategically reorganized the company’s operations to focus on the expansion of near-term revenues from its manufacturing and service business, Introgen Technical Services, Inc. (ITS), and it reduced its staff accordingly.

In conjunction with today’s filing, the company filed a variety of customary “first day” motions to support its employees and vendors during the reorganization process. As part of these motions, the company has asked the Court for permission to continue paying employee wages and salaries and to provide employee benefits without interruption. Additionally, during the restructuring process, vendors and business partners should expect to be paid for post-filing goods sold and services rendered to the company in the ordinary course of business. More information on Introgen’s Chapter 11 proceedings can be found at http://brownmccarroll.com/introgen. The information set forth on the foregoing website shall not be deemed to be part of or incorporated by reference into any of Introgen’s reports filed pursuant to the Securities Exchange Act of 1934, as amended. This website will be periodically updated as events occur.‹