03.26.12
Cetero has filed for bankruptcy protection and through the Chapter 11 process will seek to maximize the recovery of assets for its creditors. The company has secured a Debtor-in-Possession (DIP) financing of $15 million to provide working capital during the restructuring process. Cetero, based in Cary, NC, provides early-phase clinical research and bioanalytics services for pharmaceutical companies to support drug applications.
In July 2011, the FDA reported that two inspections, as well as an internal company investigation and a third-party audit, uncovered “significant instances of misconduct and violations” at a Cetero facility in Houston, TX. The FDA warned pharma companies working with Cetero that they might have to repeat or confirm any studies conducted by Cetero to support their applications between April 2005 and June 2010.
In a filing with bankruptcy court in Delaware, Cetero said the FDA's July 2011 regulatory warning letter caused the company's “liquidity position to become severely constrained.” According to the company, the FDA has not filed allegations of fraud against the company.
According to court filings, for the two months ending February 29, 2012, Cetero had revenue of approximately $11 million and liabilities totaling approximately $248 million. The company listed estimated assets ranging from $1 million to $10 million.
In July 2011, the FDA reported that two inspections, as well as an internal company investigation and a third-party audit, uncovered “significant instances of misconduct and violations” at a Cetero facility in Houston, TX. The FDA warned pharma companies working with Cetero that they might have to repeat or confirm any studies conducted by Cetero to support their applications between April 2005 and June 2010.
In a filing with bankruptcy court in Delaware, Cetero said the FDA's July 2011 regulatory warning letter caused the company's “liquidity position to become severely constrained.” According to the company, the FDA has not filed allegations of fraud against the company.
According to court filings, for the two months ending February 29, 2012, Cetero had revenue of approximately $11 million and liabilities totaling approximately $248 million. The company listed estimated assets ranging from $1 million to $10 million.