Akesis Pharmaceuticals said Jan. 21 it has ended its only drug development program and intends to file for Chapter 7 bankruptcy protection.
Akesis was developing a Phase 2a drug candidate for type 2 diabetes but said it stopped the program following an ongoing safety review in preclinical studies.
The company said a three-month study showed kidney changes in study subjects, and determined the drug would not be suitable for a chronic disease such as diabetes.
“Based on the discontinuation of our sole clinical development program, our cash position and current economic conditions, we have determined that we can no longer operate as a business enterprise,” said Akesis CEO Carl LeBel in a statement.
LeBel took over following the November resignation of former CEO Jay Lichter.
Shares of Akesis, traded over the counter as AKES, fell 12 percent Jan. 21 to close at 8 cents.
, Heather Chambers
