Biotech Values

[DewDiligence]

MBRK Files for Bankruptcy

[If I recall correctly, Adam Feuerstein of theStreet.com used to pump this name.]

http://finance.yahoo.com/news/MiddleBrook-Pharmaceuticals-bw-2459212070.html?x=0&.v=1

›Friday April 30, 2010, 4:30 pm EDT

WESTLAKE, Texas--(BUSINESS WIRE)--MiddleBrook Pharmaceuticals, Inc. (NASDAQ: MBRK) (“MiddleBrook” or the “Company”) has filed a voluntary petition (the “Petition”) for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). MiddleBrook will continue to manage and operate its business and assets during the pendency of the bankruptcy case, subject to the supervision and orders of the Bankruptcy Court and in accordance with applicable provisions of the United States Bankruptcy Code.

In conjunction with the filing, MiddleBrook is seeking customary authority from the Bankruptcy Court that will enable it to continue operations and deliver products to customers in the ordinary course of business and without interruption.

“During this process, we remain committed to continuing to promote MOXATAG through our third party partner’s electronic promotion program and maintaining product availability to our trade customers,” said David Becker, MiddleBrook Executive Vice President and Chief Financial Officer, and Acting President and Chief Executive Officer.

The filing of the Petition places an automatic stay that restrains most actions a creditor could commence or continue against MiddleBrook and its assets, under applicable bankruptcy law, without the permission of the Bankruptcy Court. Stockholders of a company in Chapter 11 generally receive value only if all claims of the company’s secured and unsecured creditors are fully satisfied. MiddleBrook is unsure if there will be value available for distribution to the common stockholders in the bankruptcy process, and therefore makes no guarantees that such claims will be satisfied.

Probable NASDAQ De-listing

MiddleBrook anticipates it will receive a letter from NASDAQ notifying it that its common stock will be de-listed from the NASDAQ Global Market for failure to pay certain fees required by NASDAQ Listing Rule 5210(d), as well as due to the filing of the Petition pursuant to NASDAQ’s discretionary authority. At this time, the Company does not intend to appeal the decision and expects that the Company’s common stock will be de-listed.

About MiddleBrook Pharmaceuticals

MiddleBrook Pharmaceuticals, Inc. (NASDAQ: MBRK - News) is a pharmaceutical company focused on commercializing anti-infective products that fulfill unmet medical needs. MiddleBrook’s proprietary delivery technology, PULSYS, enables the pulsatile delivery, or delivery in rapid bursts, of certain drugs. MiddleBrook currently markets MOXATAG, the first and only FDA-approved once-daily amoxicillin, and KEFLEX (cephalexin, USP), the immediate-release brand of cephalexin. For more information about MiddleBrook, please visit www.middlebrookpharma.com [no thanks].‹