Framingham Pharma Firm May Not Survive '09
Symbollon Pharmaceuticals Inc. does not have enough cash to continue operations in 2009 and may shut down after failing to sell its key product in 2008, the company said.
The firm has a working capital deficit of $58,189, can't pay off its currently due debts and has been unable to raise capital. As a result, management must try to sell the company or its assets or "we will be forced to cease operations."
The Framingham-based firm reported a net loss of $1.8 million for 2008 compared to a net loss of $3.7 million the prior year. But the smaller loss was the result of a decrease in clinical development expenses of the firm's IoGen dietary supplement, decreased consulting expenses and decreased investor relations expenses, the firm explained.
According to U.S. Securities and Exchange Commission filings, Symbollon launched IoGen, an Iodine-based dietary supplement aimed at promoting breast health, in November, but as of Dec. 31, had made only $391 in product sales.
At the end of 2008, Symbollon had one full-time employee, Paul C. Desjourdy, who acts as president, CEO, CFO, general counsel, treasurer and director. Desjourdy has no marketing experience and sells IoGen only through a web site.
In 2008, Desjourdy made a salary of $247,250 and was awarded common stock worth $450,000.
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