Clovis Oncology Files for Bankruptcy
Biopharmaceutical Company Files for Chapter 11 Protection
December 11, 2022
After months of speculation, Clovis Oncology Inc. and two affiliated debtors have officially filed for Chapter 11 bankruptcy protection.
The announcement marks the culmination of a difficult period for the biopharmaceutical company, which has faced declining sales and mounting debt. In recent months, Clovis has been in talks with potential buyers, but no deals have been reached.
The company said it has received a commitment of up to $75 million in debtor-in-possession financing to fund its operations during the bankruptcy process. Clovis expects to continue operating its business as usual while it works to restructure its debt and emerge from bankruptcy.
The bankruptcy filing is a major setback for Clovis, which has been developing treatments for cancer. The company's lead drug, Rubraca, is approved to treat ovarian and breast cancer. However, sales of Rubraca have been disappointing, and Clovis has been struggling to generate revenue.
The bankruptcy filing is also a blow to the biotech industry. Clovis is one of the largest biotech companies in the world, and its bankruptcy is a sign of the challenges facing the industry.
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