💥New Chapter 11 Bankruptcy Filing - AmplifyBio, LLC💥
Another POS biotech company bites the dust.
On May 16, 2025, Ohio-based AmplifyBio, LLC and ADOC SSF, LLC (collectively, the “debtors”) filed chapter 11 bankruptcy cases in the Southern District of Ohio (Judge Nami Khorrami) and as the name suggests, it’s yet another POS biotech bankruptcy.
The debtors were a “contract research and manufacturing organization focused on the development, characterization, and scalable manufacturing of advanced therapies, including cell and gene therapies, mRNA, and non-viral gene editing platforms” that spun off from non-profit Battelle Memorial Institute (“Battelle”) back in ‘21, which raised $200mm in financing from the likes of Viking Global Investors, Casdin Capital, and JD Vance’s own Narya Capital.
Good investment? Uh, let us know if this sounds familiar:
“[T]hese chapter 11 cases were necessitated by the Debtors’ growing lack of resources and operational challenges, as the Debtors were unable to service their secured debt and generate sustainable revenue.”
Which explains the “were” ☝️. Prior to giving up and filing petitions, the debtors tried to market the business and raise additional financing. Not a soul was interested. Something about it making zero sense to shovel more capital into an enterprise that generated growing “net losses of $74 million in 2024, $56 million in 2023, and $26 million in 2022” and entered ‘25 with $3mm in cash.
So in April ‘25, the debtors donated or sold “the various animals the Debtors cared for as part of their research efforts,” including “approximately 300 non-human primates,” the phrasing of which is … umm … suggestive …
… terminated all employees, and shut down operations. Heck, they even took down their website. And the same month, prepetition lender Hercules Capital, Inc. peaced out and assigned its ~$28.1mm in loans to Battelle.*
Which brings us to the purpose of the BK: to chop up and sell off remaining assets. For that, the debtors hired Hilco Commercial Industrial, LLC (“Hilco”) and intend to “file one or more sale and/or bid procedures motions outlining a process for such sales in the first few weeks after the Petition Date.” To fund the sale process and the cases generally, Battelle is ponying up another $2.5mm in the form of a 10% interest, new money term loan.
The first-day hearing will take place later today, May 21, 2025, at 10am ET. Whether the debtors will ultimately confirm a plan is TBD, but it seems pretty irrelevant either way.
The debtors are represented by McDonald Hopkins LLC (Scott Opincar, Maria Carr) as legal counsel, Accordion Partners, LLC (Kasey Rosado) as financial advisor and CRO, and Hilco as liquidator. Batelle and Battelle Services Company, Inc. are represented by Ice Miller LLP (Daniel Swetnam, John Cannizzaro).
*The debtors also owe ~$6.1mm to equity holders Battelle Services Company, Inc., KAVRA 14 LLC, and Kavra 14-D, LLC under convertible promissory notes issued in February and March ‘25 to “help sustain liquidty [sic].”
Company Professionals:
Legal: McDonald Hopkins LLC (Scott Opincar, Maria Carr)
Financial Advisor and CRO: Accordion Partners, LLC (Kasey Rosado)
Claims Agent: Epiq (Click here for free docket access)
Other Parties in Interest:
Battelle Services Company, Inc. and Battelle Memorial Institute
Ice Miller LLP (Daniel Swetnam, John Cannizzaro)