Proteus Digital Health, once worth $1.5 billion, files for Chapter 11

June 16, 2020
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Proteus Digital Health, once worth $1.5 billion, files for Chapter 11 1

Proteus Digital Well being, as soon as value $1.5 billion, recordsdata for Chapter 11

Proteus Digital Well being CEO Andrew Thompson

Qin Chen | CNBC

Proteus Digital Well being has filed for Chapter 11 chapter safety, in response to a submitting late Monday. 

The Silicon Valley firm develops ingestible sensors that talk when medicines are taken, plus a wearable patch that screens the response. At one level, the “good capsule” maker was valued at $1.5 billion in response to Forbes. 

However in current months, it has struggled to lift further financing, and furloughed the vast majority of its staff for 2 weeks in November 2019, CNBC beforehand reported. Stat Information beforehand reported {that a} take care of Otsuka was terminated in January of this yr. 

In keeping with the authorized submitting, the corporate has $100 to $500 million in belongings and $50 to $100 million in liabilities. It has an estimated 200 to 999 collectors, and its high collectors embrace PREI’s Westport Workplace Park ($1,035,305), Romaco North America ($510,848), Otsuka America Pharmaceutical ($397,721), Workday ($288,000) and Xceliance ($215,616). Spring Ridge Ventures owns virtually all of its Collection A most popular inventory. 

The board of administrators appointed Lawrence Perkins as its interim chief govt officer after a stint as a chief restructuring officer. Its former CEO Andrew Thompson is now listed on the web site as a co-founder.

The corporate has raised greater than $500 million in enterprise capital from a mixture of know-how traders, household workplaces and pharmaceutical giants like Novartis. In 2017, it introduced a partnership with Otsuka, a pharmaceutical firm. As a part of the deal, Otsuka invested $88 million within the firm. 

Proteus matches within the so-called “digital therapeutics area” as a result of it augments the standard means of taking a medicine. However traders have famous that whereas the method is promising, it has traditionally been a problem to marry the digital and pharma sectors.

 

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