SOUTH SAN FRANCISCO, CA--(Marketwired - Jun 10, 2016) - Diadexus, Inc. (OTCQB: DDXS), a diagnostics company developing and commercializing products that aid in assessing the prognosis of cardiac disease, today announced that it is filing for relief under Chapter 7 of Title 11 of the US Bankruptcy Code in order to initiate an orderly liquidation of the assets of the Company. The Company has been notified that its lender, Oxford Finance LLC, exercised certain of its rights under the August 2014 Loan and Security Agreement, including with respect to acceleration of obligations and demand for repayment and the removal of all of the available cash and investments from the accounts of the Company.
The Chapter 7 case will be filed in the US Bankruptcy Court for Northern District of California. Upon the filing, a Chapter 7 trustee will be appointed in the case and the assets of the Company will be liquidated in accordance with the bankruptcy code. Additional information on the process may be obtained through the bankruptcy court.
The Company has been in discussions with Oxford Finance LLC for several months in an attempt to restructure its current loan agreement and reduce near-term financial constraints on its business but has been unable to reach an agreement. As of March 31, 2016, $13.3 million in principal remained outstanding under the Loan and Security Agreement with Oxford. As part of this process, the Company engaged Alvarez & Marsal Healthcare Industry Group, LLC as its restructuring advisor.
The Company also announced that Leone Patterson, the Company's Chief Financial Officer (CFO) since March 2015, has notified Diadexus that she will be leaving effective immediately.
About Diadexus, Inc.
Diadexus, based in South San Francisco, California, is a diagnostics company developing and commercializing products that aid in the prediction of cardiac disease risk, providing healthcare providers with actionable information for managing patients. The Company pioneered the testing of Lp-PLA2, a marker of vascular-specific inflammation that provides new information, over and above traditional risk factors measured in a lipid panel, and has over a decade of peer-reviewed literature validating its utility. Diadexus' products, the PLAC® Test ELISA Kit, first cleared by the FDA in 2003, and the PLAC® Test for Lp-PLA2 Activity, cleared in December 2014, are the only two FDA-cleared tests to measure Lp-PLA2.
The Company also has a pipeline of biomarkers for heart failure, proADM, proET-1 and proANP, each of which provide distinct, additive information for healthcare providers over currently available markers. Diadexus also provides services to pharmaceutical partners to address the need to incorporate biomarkers in clinical development.
This release contains forward-looking statements that are subject to a number of risks and uncertainties, including, but not limited to, statements related to the liquidation of the assets of the Company and the outcome of proceedings in bankruptcy court. Forward-looking statements are based on current expectations and assumptions and entail various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Important factors known to us that could cause our results to differ materially from those described in the forward-looking statements can be found in our recent quarterly report on Form 10-Q, annual report on Form 10-K, and other reports filed with the Securities and Exchange Commission that are available at the SEC's web site at www.sec.gov. Except as required by law, we disclaim any obligation to update or revise any forward looking statement, whether as a result of new information or otherwise.