Accentia Biopharmaceuticals Files for Bankruptcy

Accentia Biopharmaceuticals Inc. (ABPI), a developer of late-stage cancer drugs, sought bankruptcy protection a week after deciding not to challenge its delisting by the Nasdaq Stock Market.

The company said it has assets of $134.9 million and debt of $77.6 million in Chapter 11 documents filed today in U.S. Bankruptcy Court in Tampa, Florida, where Accentia is based. Nine affiliates, including Biovest International and Biovax, also sought protection. Biovest listed assets of $18 million and debt of $36 million.

``After evaluating alternatives, Accentia determined that reorganization is the best option at this time, enabling the company to remain focused on the commercialization of its drug portfolio,'' the company said in a statement. Accentia plans to continue operations and ultimately pay all creditors in full.

Accentia focuses on the commercialization of patent- protected products for the treatment of chronic and life- threatening diseases, according to the statement. It reported a net loss of $76 million last fiscal year on sales of $18.3 million.

Accentia fell 13 cents, or 59 percent, to 9 cents at 1:07 p.m. New York time in over-the-counter trading. Before today, the shares had plunged 93 percent this year.

The case is In re Accentia Biopharmaceuticals Inc., 08-17795, U.S. Bankruptcy Court, Middle District of Florida (Tampa).

To contact the reporter on this story: Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net.

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