MicroIslet, a publicly traded San Diego biotech engaged in stem cell therapies to treat diabetes, said Nov. 10 it filed for Chapter 11 bankruptcy protection.
The company said it plans to continue operating the business “without interruption” as the management team leads its restructuring plan.
“During the past 16 months we believe we have made substantial progress toward the goal of getting the company’s lead product, MicroIslet-PTM, ready for human clinical trials,” said Michael Andrews, CEO of MicroIslet, in a statement. “Unfortunately, during that period of time capital markets have not responded to these advances, and we have not been able to secure significant funding as a public company.”
Andrews said the company aimed to simplify its capital structure to enable the filing of an investigational new drug application with the FDA, and to emerge from bankruptcy as a private company.
MicroIslet also said it filed a series of motions with the bankruptcy court to assure the continuity and stability of the business, including the payment of wages to employees and vendors.
, Heather Chambers
