Good-bye, Isolagen Inc. Hello, Fibrocell Science Inc.
In mid-June, the Exton-based Isolagen sought to reorganize its finances under Chapter 11 of the U.S. Bankruptcy Code.
The company had run out of cash at a critical point in its development: Its experimental wrinkle treatment is undergoing review by the Food and Drug Administration.
Lots of small drug developers have struggled over the last year with a difficult fund-raising environment. So it was far from clear whether Isolagen would be able to emerge from bankruptcy.
Last week, a bankruptcy judge in Wilmington approved Isolagen's reorganization plan, which calls for the company to emerge under the name "Fibrocell Science."
Isolagen chief executive officer Declan Daly will remain an executive in the new Fibrocell. He could not be reached for comment yesterday.
New investors will supply $2 million to fund Fibrocell's continued operations and certain distributions that must be made under the reorganization plan.
As with any bankruptcy reorganization, current Isolagen shareholders will be wiped out.
Still Nothing On
A Malvern software company that's been developing technology to connect television sets directly to the Internet has been acquired by a West Coast firm.
And in rarity, it looks as if the local operations will remain intact.
AnySource Media L.L.C., founded in 2006, was bought Aug. 27 by the publicly held DivX Inc., of San Diego, in a transaction valued at a maximum of $15 million.
DivX paid $7.5 million in cash up front. In addition, it could pay up to $7.5 million more should AnySource reach certain technical, revenue and distribution goals. AnySource had no revenues at the time of the sale.
DivX's software is used in more than 200 devices, such as Blu-ray players, digital TVs and gaming consoles. The company had net income of $10 million, or 30 cents per share, on net revenues of $93.9 million in 2008.
AnySource Media co-founder and CEO Mike Harris joined the DivX management team. About 20 people work in Malvern, and will remain under Harris' supervision.