Humanigen entered chapter 11 in Delaware on January 3, 2024 as a clinical-stage biopharmaceutical company built around lenzilumab after the FDA rejected its EUA request and the ACTIV-5/BET-B study failed to rescue the program. The filing followed a collapse in liquidity, Nasdaq delisting, and mounting litigation and trade liabilities. Management said the company had no secured debt but faced about $44.1 million of general unsecured claims, alongside net losses of $236.6 million in 2021 and $70.7 million in 2022, leaving the estate with only bare-bones cash to run a bankruptcy process. source filing source filing

The filing posture was effectively a sale case from day one. Taran Therapeutics, which was tied to a syndicate led by Chairman, CEO, and acting CFO Cameron Durrant, agreed to provide a $2 million DIP and serve as stalking horse for substantially all assets, forcing the board to hand negotiations to a special committee of independent directors. The proposed purchase price combined assumed liabilities, $2 million of cash subject to dollar-for-dollar reduction by DIP obligations, milestone payments, cure overages, and credit-bid rights, making the chapter 11 strategy a quick 363 sale followed by liquidation rather than a going-concern reorganization. source filing source filing source filing