A Bridgewater specialty pharmaceutical firm says it will run out of money by the end of the month if it doesn’t find a buyer, investor, or other partnership deal.
NovaDel Pharma Inc. announced in August that it would seek “strategic alternatives” to keep the company moving forward. On Thursday, the company provided an update, estimating it “will not have adequate cash to meet its working capital needs after the end of January 2012.”
If NovaDel can’t find a deal by the end of the month, the company said it intends to file for bankruptcy.
NovaDel makes oral spray formulations of marketed drugs. It has two products – an angina treatment and an insomnia drug – already on the market.
NovaDel was dealt a major setback in August when a court upheld a Pfizer Inc. patent on the erectile disfunction drug Viagra. NovaDel has been developing an oral spray formulation of the drug, but the court’s ruling means NovaDel won’t be able to market its drug – named Duromist – in the U.S. until 2019. The company noted that it could start selling Duromist outside the U.S. as early as 2013.
According to an SEC filing, the company had $650,000 in assets and $9 million in liabilities as of Sept. 30.
In addition to its bankruptcy warning, NovaDel also said three members of its board of directors have resigned: Mark Baric, Thomas Bonney and Charles Nemeroff. The company’s website lists only four board members. After the three resignations, the only remaining board member is Steven B. Ratoff, the company’s chairman and CEO.