Iceland's deCODE genetics files for bankruptcy

posted: 84 DAYS 19 HOURS AGO

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REYKJAVIK, Iceland -Icelandic research company deCODE genetics Inc. filed for bankruptcy protection in the United States on Tuesday to facilitate the sale of its assets, the company announced.

The petition for relief under Chapter 11 of the Bankruptcy Code was filed in Delaware, the company said. It said it has an agreement to its Iceland-based subsidiary Islensk Erfdagreining (IE), and its drug discovery and development programs to Saga Investments LLC.

Islensk Erfdagreining conducts deCODEs human genetics research, manages population genetics resources and provides personal genome scans, DNA-based risk assessment tests, and genomics services for contract customers.

If the sale is approved, the company said it expects to be liquidated. "Any recovery for stockholders of deCODE would be highly unlikely," it added.

Kari Stefansson founded deCODE genetics in 1996 to scour the nation's genes for keys to disease. He believed Icelanders' detailed family trees and common descent from 9th century Norwegian settlers formed a rich scientific resource that could unlock the secrets of cancer, mental illness and other ailments.

Saga Investments LLC is venture backed by two U.S. companies, Polaris Venture Partners and Arch Venture Partners, deCODE said.

The bankruptcy filing does not include U.S.-based former subsidiaries deCODE Biostructures Inc. and Emerald BioSystems Inc.

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On the Net: http://www.decode.com/

2009-11-17 10:48:16