Date: Nov 11, 1996 Author: Lisa Benavides Source: bizjournals (
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After more than two years in Chapter 11 bankruptcy, Cambridge Biotech Corp. is hoping at least a part of its old self can gain new life with a new name.
The Worcester-based company spun out its therapeutic immune system business into the newly formed Aquila Biopharmaceuticals Inc. two weeks ago as part of its court-approved reorganization plan.
The 70-employee Aquila also plans to eventually move from the 75,000 square feet it now occupies in Worcester's Biotechnology Research Park to smaller space, though a new location has not been determined.
Aquila has been trading for about a week on Nasdaq, opening with a high of $5 on Oct. 24 and reaching a low of $3 on Monday.
Cambridge Biotech was delisted from Nasdaq trading in 1994, following a number of controversies, including accusations it had released inaccurate revenue numbers.
Meanwhile, what remained of Cambridge Biotech--its 100-employee diagnostic business--was sold to Rockland-based BioMerieux Vitek Inc. two weeks ago for $5.85 million in cash. BioMerieux Vitek is part of BioMerieux, a French biotechnology group.
Cambridge Biotech's old manufacturing operations in Rockville, Md., are now a wholly owned subsidiary of BioMerieux. The subsidiary will continue to develop kits to diagnose diseases caused by retroviruses.
As for the bankruptcy, settlements are now being made to creditors, plaintiffs and former shareholders. Unsecured creditors will receive cash payments equal to 51 percent of their claims or receive shares of Aquila stock at $9.50 per share equal to 100 percent of their claims.
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Once the largest and oldest biotech in Worcester with 400 employees, Cambridge Biotech had its operations sold off piecemeal as part of the bankruptcy reorganization.
In May, the company sold its intestinal diseases and human Lyme disease diagnostic businesses to New York-based Carter-Wallace Inc. for $4.5 million in cash.
It also sold its reference laboratory business to West Bridgewater-based Boston Biomedica Inc. for an unspecified, upfront amount, as well as royalties on revenuesfrom the existing client base.
In June, Cincinnati-based Meridian Diagnostics Inc. bought Cambridge Biotech's product line to treat intestinal diseases for $5.5 million in cash.
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