Humanigen, Inc., a clinical-stage biopharmaceutical company based in Burlingame, California, filed for Chapter 11 protection in the District of Delaware on January 3, 2024 (Case No. 24-10003) before Judge Brendan Linehan Shannon. The company developed anti-inflammatory monoclonal antibodies, with lead program lenzilumab (GM-CSF neutralizing antibody) as the centerpiece of its COVID-19 cytokine storm treatment thesis. Distress followed the FDA's denial of emergency use authorization for lenzilumab in September 2021, the failure of the NIH-sponsored ACTIV-5/BET-B trial in July 2022, and Nasdaq delisting in October 2023, leaving approximately $44.1 million in unsecured obligations and no secured debt. An insider $2 million DIP facility from Taran Therapeutics, Inc.—an acquisition vehicle formed by the CEO—funded a compressed 363 sale process. The stalking horse bid from Taran was approved after no competing bids emerged, with the sale closing on February 20, 2024. A liquidating plan was confirmed on June 18, 2024, establishing a liquidating trust administered by Dundon Advisers LLC with an effective date of July 12, 2024. General unsecured creditors are projected to recover between 0.39% and 19.25% from trust proceeds. As of September 30, 2024, the trust had received $1,021,106 in total receipts including a $325,000 D&O settlement, with anticipated GUC payments of $172,000.
