Biocept Inc., a prominent molecular diagnostics company, witnessed a staggering 48.7% decline in its shares today. This abrupt downturn culminated in the company’s decision to file for Chapter 7 bankruptcy, officially lodged in the U.S. Bankruptcy Court for the District of Delaware.
According to a statement released to the U.S. Securities and Exchange Commission, Biocept disclosed that this drastic step was taken after a meticulous evaluation of strategic alternatives. This move underscores the challenging landscape faced by the company in recent times.
Concurrently with this announcement, Antonino Morales tendered his resignation as the president and CEO of Biocept. Additionally, Marsha Chandler, Bruce Gerhardt, Quyen Dao-Haddock, Ivor Royston, and Linda Rubinstein relinquished their positions on Biocept’s board of directors on the same day, signaling a significant shakeup in the company’s leadership.
This Chapter 7 bankruptcy filing carries with it a pivotal implication. It legally discharges Biocept from the obligation to repay a substantial portion of unsecured debts, which encompasses liabilities like credit card debts and personal loans.
Earlier this year, in January, Biocept initiated an exploration of strategic alternatives geared toward augmenting shareholder value. For this purpose, Biocept enlisted the services of EF Hutton, a division of Benchmark Investments Inc., as its financial advisor to provide expertise in this endeavor.
As part of a comprehensive restructuring plan, Biocept undertook a substantial reduction in its workforce, resulting in a downsizing of approximately 35%.
In August, Biocept divulged its second-quarter (Q2) financial figures, indicating a stark decline. Revenues for Q2 plummeted to $589,000 from the previous year’s $5.8 million, primarily attributed to a reduced demand for COVID-19 testing services. Nevertheless, the company managed to narrow its net loss to $3.6 million, or $3.50 per share, from the previous year’s $10 million, or $17.82 per share.
Notably, the commercial accessions delivered in Q2 2023 dwindled drastically, dropping to 322 from an impressive 77,779 recorded a year ago.
In a significant move last month, Biocept entered into a strategic agreement with Plus Therapeutics Inc’s CNSide, substantially expanding upon the comprehensive laboratory services agreement initially announced in June 2022.
As of the most recent update, Biocept shares (BIOC) have witnessed a substantial decline of 48.7%, now resting at $0.52. This sharp decline underscores the gravity of the company’s current financial predicament.