Biovest International Inc., which exited from bankruptcy protection in July, still faces an uncertain future as it anticipates incurring future losses.
The Tampa-based company develops cancer vaccines, which aim to treat and diminish the aggressiveness of B-cell non-Hodgkin’s lymphoma. The company has a product candidate called Biovax ID that has been evaluated in clinical trials and it pursing marketing approvals. The company also develops and sells Autovax ID, a medical device that develops personalized medicines and other products.
Biovest has never been profitable, and reported negative cash flows from activities of $5.7 million for the year ended Sept. 30, and $4.3 million, for the year ended Sept. 30, 2012.
Although the company is working with the National Cancer Institute to develop Biovax ID, it expects to continue incurring losses until the product receives marketing approval, which is not guaranteed.
In a filing with the U.S. Securities and Exchange Commission from Dec. 27, the company’s accountant, Cherry Bekaert LLP, has indicated that there is substantial doubt about the company’s ability to continue as a going concern because of the Biovest’s history of losses and expected future losses.
Biovest has already undertaken restructuring measures, and has filed for bankruptcy protection twice.
In March, the company filed for bankruptcy after it wasn’t able to pay $30 million in secured debt that was due on Nov. 17, 2012. Biovest emerged from bankruptcy protection on July 15 after eliminating about $48.5 million in debt, which was converted into new shares of the company’s common stock. The case was Biovest’s second bankruptcy it filed previously in 2008.
The company anticipates its income for fiscal 2014 will be insufficient to finance operations without another source of funding, it says in SEC filings. Biovest says it is looking for additional financing.
For the last edition of Turnaround Tuesday, see “Struggling Plug Power Regains Nasdaq Listing Compliance.”
For more on troubled companies, see Mergers & Acquisitions’ Distressed Company Watch List.