Silicon Valley biopharmaceutical company files for Chapter 11 bankruptcy
By Jonathan Randles | Bloomberg
Eiger Biopharmaceuticals Inc., a company developing therapies for rare metabolic diseases, has filed for bankruptcy.
Publicly traded Eiger listed about $38.8 million in assets and $53.1 million in liabilities in a Chapter 11 petition filed Monday in Dallas. The bankruptcy filing will give Eiger time to discuss restructuring options with its creditors.
The stock fell as much as 51% after Bloomberg reported the filing. In bankruptcy, equity is last in line for repayment and shareholders are usually wiped out.
Eiger, based in Palo Alto, California, filed Chapter 11 after its board of directors explored other financing options including searching for equity financing, according to court documents. The company said it develops therapies for hepatitis delta virus and other serious diseases.
Eiger said in court papers it will attempt to sell its assets in Chapter 11.
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