Clo­vis files for bank­rupt­cy, will keep op­er­at­ing and plans to sell pipeline as­set to No­var­tis

A lit­tle over a month since Clo­vis On­col­o­gy fired 115 em­ploy­ees and laid out its dire fi­nan­cial sit­u­a­tion, the bio­phar­ma com­pa­ny filed for Chap­ter 11 bank­rupt­cy to­day.

If the US Bank­rupt­cy Court for the Dis­trict of Delaware ap­proves, the com­pa­ny will sell off FAP-2286, a fi­brob­last ac­ti­va­tion pro­tein (FAP)-tar­get­ing ther­a­peu­tic can­di­date, to No­var­tis. The Swiss phar­ma would pay $50 mil­lion up­front and up to an ad­di­tion­al $333.75 mil­lion if the drug achieves cer­tain de­vel­op­ment and reg­u­la­to­ry marks, as well as $297 mil­lion in fu­ture sales mile­stones.

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