>>> I'm beginning to think they are considering filing for Chapter 11 bankruptcy <<<
I doubt that's it (though you never know), since PYMX still has partnerable assets, and the ability to do the reverse split/financing. Distressed biotechs can survive for years, just look at Bianco/CTIC and others.
As I see it, Nic will take one of these two paths -
1) Reverse split / financing, using the money to fund the Phase 2B ABSSSI dose optimization trial in 2013. Then with that data in hand, he seeks a partnership (choice of partnering ex-US rights, full global rights, some or all of the infectious disease indications, with the potential for a co-promote option retained by PYMX). In other words - the same basic strategy Nic has had all along.
2) Partner some or all of the infectious disease indications now, based on the clinical data to date. Nic can carve out oral mucositis from the deal and use that as the inhouse program going forward.
I'm figuring he goes with #1