Medifacts in troubled waters
bankruptcy protection amidst plans to sell off its clinical
research services division.
Company CFO Lynn Michl told Outsourcing-Pharma.com that he was unable to comment on why.
The sale of the division, which provides Phase I-IV clinical trial services, will leave the troubled firm with only its cardiac safety services unit, which supports the acquisition of data to determine the safety and/or efficacy of drugs or devices in clinical trials, for which it plans to implement "a financial restructuring."
"The operations of the business have been challenged in recent months," said president and CEO Michael Woehler in a statement.
"Through the implementation of these filings Medifacts' long-term financial stability will be greatly improved."
During the Chapter 11 reorganisation process, Medifacts said it expects to operate as normal and added that it does not expect its unsecured creditors, vendors or customers to be affected.
The company, which also has offices in Canada, Germany, Poland and China, also said its foreign operations will remain unaffected.
Michl said he was unable to comment any further on the matter.
