The Board of QRxPharma has resolved to place the company in voluntary administration after coming to the conclusion that its ongoing solvency was unlikely.
According to a statement issued by the company, the decision follows a full review and "comprehensive programme" to examine what value could be recovered from its remaining assets after it halted development of the MOXDUO portfolio of products last year.
QRxPharma hit trouble in April last year after the FDA rejected its third application for marketing approval of opiod pain drug MOXDUO.
"Over a period of 4 months the Board and Management undertook a comprehensive programme...This process unfortunately has not delivered any results," it said. "The terms of employment , incentives and severance of all staff and contractors were reviewed by the previous Directors in June 2014 and funds covering these liabilities had been placed in the hands of an escrow agent. All staff and contractors other than two Sydney based administrative staff have since been terminated in accordance with their contracts. All operational expenses have been reduced to an absolute minimum."
It continued, "Notwithstanding these actions, the Company’s current funds are insufficient to contemplate any form of future development of the QRx portfolio or take advantage of other business opportunities."
The Board went on to rule out any capital raise due to "historical matters that in our opinion may expose the Company to liabilities arising from potential litigation."
"Given the inability to in anyway move forward we have examined all the options in front of the Company and in particular referencing the objective of protecting and enhancing shareholder value...After due consideration we have come to the conclusion that the Company's circumstances render its ongoing solvency unlikely and, therefore, the best possible interests of shareholders can be achieved by placing the Company into Voluntary Administration and to assist the Administrator in any way we can to restore shareholder value."