In a recent filing, Cyberkinetics Neurotechnology said it only had enough cash to last 30 days. If negotiations fail with its secured creditor, GE Capital, the company will shut down and may seek bankruptcy protection.
At one time an oft-discussed early stage device firm, Cyberkinetics has seen a steady decline in share price. Current market conditions are largely to blame: investors have little patience for products with long, windy paths to commercial success, even if they offer significant patient upside.
“The current environment in the general marketplace makes it next to impossible to raise the capital that we need,” said Timothy Surgenor, CEO of Cyberkinetics, in an interview with The Indianapolis Star.
Though best known for its BrainGate System, an investigative device designed to provide brain-based control of a computer for severely motor-impaired individuals, the company had pegged its near-term hopes on Andara OFS. Andara is designed to stimulate nerve repair and restore sensation and motor function.
In February, Cyberkinetics and Neurometrix formed a joint venture to co-develop Andara for peripheral nerve injury. In its most recent quarter, troubled NeuroMetrix took a write-down of $169,300 because of this investment.
Based on the Cyberkinetics’ recent (informal) communications with the FDA, it does not anticipate approval of Andara before the end of 2008, if at all.
Previously: [Video] Interview with Timothy Surgenor, President & CEO of Cyberkinetics Neurotechnology