Near­ly out of cash, a for­mer Sarep­ta part­ner asks French courts to over­see re­struc­tur­ing

Lyso­gene is tee­ter­ing on the edge.

The Paris biotech re­quest­ed the coun­try’s gov­ern­ment open what’s known as a “safe­guard pro­ceed­ing” on Tues­day, a le­gal ma­neu­ver amount­ing to a cor­po­rate re­struc­tur­ing over­seen by a judge. A de­ci­sion about how Lyso­gene shall move for­ward is ex­pect­ed next week, and the com­pa­ny has re­quest­ed a stock halt while the French court de­lib­er­ates.

Tues­day’s move comes af­ter Lyso­gene’s gene ther­a­py for San­fil­ip­po syn­drome type A, or MPS II­IA, flunked a PhII/III study last month when it whiffed on im­prov­ing cog­ni­tive de­vel­op­ment in pa­tients old­er than 30 months. The biotech stock has been down more than 66% this year on the Eu­ronext Paris ex­change be­fore Tues­day’s halt.

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