The stock price of Dendreon was down by 68% to $0.30 per share as the Seattle based biotechnological company filed for bankruptcy protection under Chapter 11. Dendreon is now aiming to resurrect its financial structure to continue future operations in a smooth way and increase the growth of the company.
The protection was filed after discussions were held among senior leaders and board of directors who agree to the terms on resurrecting structure that could mean a total re-organization or a sale of its popular cancer drug operation.
Dendreon is seeking this protection with a plan, which involves a possibility of a takeover with the complete sale of the company or takeover by the lenders as the company currently faces a major shortage of cash. In the U.S. Bankruptcy court, the biotech company showed that it has debts worth $664 million while its assets are currently valued at $364 million, which means its current ratio currently stands at 0.59:1 showing how weak the financial structure of the company is currently. Continue reading