Zosano Pharma is on a liquidation path, with the operative restructuring posture framed by its Second Amended Chapter 11 Plan of LiquidationDkt. 291 after a Chapter 11 filing driven by failed financing and regulatory options rather than a going-concern reorganization.
The debtor entered Chapter 11 on June 1, 2022 through its Voluntary PetitionDkt. 1, after its lead asset, M207, failed to clear the FDA approval process on a timeline and cost profile the company could finance. The Steven Lo First Day DeclarationDkt. 15 describes a clinical-stage biopharma company with minimal revenue, net losses of about $30 million in 2020 and $33 million in 2021, and an FDA path that required additional clinical work after the agency rejected the resubmitted M207 application in February 2022. A February 2022 equity raise generated $14.1 million in net cash, but that capital was insufficient to fund operations and the required regulatory work.
Before filing, Zosano explored strategic alternatives and ran a broad outreach process, contacting more than 150 potential transaction parties, but the resulting interest focused on discrete assets and did not support a value-maximizing standalone transaction. The debtor’s case strategy therefore centered on preserving value, selling or otherwise monetizing assets, maintaining limited operations during the wind-down, and addressing approximately $10.5 million of unsecured claims identified in the Steven Lo First Day DeclarationDkt. 15.
The current case trajectory is liquidation rather than rehabilitation. The Second Amended Chapter 11 Plan of LiquidationDkt. 291 is debtor-sponsored and organized around five classes, reflecting the case’s transition from first-day stabilization and asset monetization into a plan-based wind-down. The context pack does not identify a confirmation order, effective date, or scheduled near-term hearing, so the key posture is the pending or operative liquidation-plan framework rather than an active financing or sale milestone.
