Akesis Pharmaceuticals Discontinues Sole Clinical Development Program and Announces Intent to File for Chapter 7 Bankruptcy
SAN DIEGO--(BUSINESS WIRE)--Jan 21, 2009 - Akesis Pharmaceuticals, Inc. (OTCBB:AKES) today announced it has discontinued its sole clinical development program for AKP-020, a Phase IIa drug candidate for the treatment of diabetes mellitus. “After analyzing the data from our three-month preclinical safety program, we have decided to discontinue the diabetes program and not pursue further regulatory submissions for this indication,” said Carl LeBel, Ph.D., the Company's president and chief executive officer. “Based on the renal changes resulting from the doses used in our preclinical safety program, the Company and its expert advisors have determined that the safety profile of AKP-020 makes it no longer viable as a drug candidate in a chronic disease setting,” Dr. LeBel added.
As a result of the discontinuation of the AKP-020 program, the Company also announced its intent to voluntarily file a bankruptcy petition under Chapter 7 of the U.S. Bankruptcy Code. “Based on the discontinuation of our sole clinical development program, our cash position and current economic conditions, we have determined that we can no longer operate as a business enterprise,” Dr. LeBel added.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can generally be identified as such because the context of the statement will include words such as "will", "expects", "should", "believes", "anticipates" or words or phrases of similar meaning. Examples of such statements include statements relating to the Company's intent to voluntarily file a bankruptcy petition under Chapter 7 of the U.S. Bankruptcy Code. Stockholders, potential investors and other readers are cautioned that these forward-looking statements are predictions based only on current information and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by the forward-looking statements. Certain of those risks and uncertainties are discussed in the Company's filings with the Securities and Exchange Commission, including the Company's most recent annual report on Form 10-K (as amended by its annual report on Form 10-K/A) and quarterly reports on Form 10-QSB. These forward-looking statements are only made as of the date of this press release, and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Posted: January 2009