Neurologix Inc. (NRGX) was a maker of gene therapies for late-stage Parkinson’s, depression and Huntington’s disease. Like several other biomedical companies in recent years, Neurologix recently filed for chapter 7 bankruptcy protection under the U.S. Bankruptcy Code.
The company is based out of Fort Lee, New Jersey and had about $1.2 million worth of assets at the time of filing. Unfortunately for them, they also were carrying nearly 10 times that amount in debt. Even though Neurologix is based in Jersey, they filed for bankruptcy in Wilmington, Delaware.
Since Neurologix has filed for chapter 7 bankruptcy, their assets will be liquidated. Currently, Corriente Advisors LLC owns 23% of Neurologix, General Electric Pension Trust owns about 20 percent, Palisades Private Partnership LP has about 12 percent, DaimlerChrysler Corp. LLC Master Retirement Trust has approximately 7 %, and ATEC Trust has about 6%.
Companies like Neurologix frequently undergo bankruptcy because medical and biotechnology firms face many challenges when pioneering new drugs and challenging current standards of treatment. Moreover, many biotechs land upside down because their treatments are trumped by newer options.