In August, Arbios Systems suspended operations and laid-off employees as it tried – unsuccessfully – to raise capital. The company has now filed for bankruptcy protection.
Given the economy and Arbios’ dire cash position, the company’s board concluded that a Chapter 11 filing was the best course of action. Arbios will sell its assets, principally SEPET, a blood purification device, through a bid solicitation plan.
Shawn Cain, Interim President and CEO, expressed caution in a statement, “There can be no assurances that we will generate any substantive offers through a proposed bid solicitation process, or that any such offers will be acceptable to the Bankruptcy Court.”
SEPET uses sterile, single-use, disposable cartridges to filter a patient’s blood and remove harmful impurities like ammonia. These substances would otherwise accumulate in the patient’s bloodstream during liver failure, accelerating damage to the liver and other organs.
In May, Arbios began a pivotal trial for its SEPET liver assist device. The company received an Investigational Device Exemption from the FDA allowing Arbios to begin a pivotal clinical trial for SEPET in acutely ill patients suffering from chronic liver disease.