AGIX Files For Chapter 11 Bankruptcy

For those of you still holding onto AtheroGenics (AGIX), the research-based pharmaceutical company with a drug development program (according to Zacks senior drug industry analyst Jason Napodano, CFA, who published a report on AGIX last week), the company has just announced today it has filed for Chapter 11 bankruptcy.

The question now seems to be who, if anyone, will pick up the pieces of the late-phase candidate AGIX had been developing.  But for anyone shocked by today’s announcement, they shouldn’t be.  From the same AGIX report: “The company released phase III data on lead compound AGI-1067 that did not meet the primary end point.”

And this: “In September 2008 AtheroGenics announced it will not repay the its 4.5% Convertible Notes due September 2, 2008, nor will it make its scheduled interest payment on the 2008 Notes or the 4.5% Convertible Notes due March 1, 2011.”

In a recent conversation with Jason, he reminded me this: “We’ve had the name as a sell for a year now. I downgraded it at around $3.”  In other words, AGIX was an excellent call on a short-sell opportunity.  Oh well, here’s hoping you take advantage of the next one.

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