Medical-device company Unilife Corporation filed for bankruptcy protection last week after laying off more than a third of its 140-person workforce earlier this month.
This is the latest in an ongoing series of financial struggles for the York, Penn.-based company, which also laid off more than 40% of its workers in 2016 and sublet some of its office space to save money after struggling to sell, customize and license its technology to pharmaceuticals and biotech companies.
Unilife makes wearable drug injectors, some of which were licensed to Amgen in a 2016 deal that included a $20 million license fee and the purchase of senior secured convertible notes. Unilife's bankruptcy is a default on those notes as well as a default on a 2014 credit agreement.
As the bankruptcy case goes to court, Unilife will be "debtors-in-possession," which means it will continue to operate its business. The company said in an SEC filing that it hopes to restructure its balance sheet or sell assets to become financially viable.
"This is a critical step in our ongoing transformation to a successful wearable injector-focused business," said John Ryan, Unilife's CEO, in the SEC filing.
The bankruptcy comes a little less than a year after Unilife investigated its former CEO Alan Shortall and former chairman of the board Jim Bosnjak for legal and company-policy violations, including using the company's money to help finance a home mortgage.
