Humanigen (OTCMKTS:HGEN) stock is falling hard on Friday after the company filed for Chapter 11 bankruptcy protection.
This bankruptcy filing comes after Humanigen failed to secure regulatory approval for its Covid-19 treatment lenzilumab. The company attempted to get Emergency Use Authorization for the antibody back in 2021 but was rejected by regulators.
With its failure to bring a Covid-19 treatment to market, Humanigen warned midway through last year that strategic options may be required. Now, that’s proving to be the case, with the company only having assets worth $521,000 and debt of $44.1 million.
How This Affects HGEN Stock
A bankruptcy filing means that HGEN stock may not be around for much longer. If the financial troubles for Humanigen continue, it could be the end for the business and its shares.
Investors seem to agree, as many are jumping ship following today’s bankruptcy announcement. As of this writing, more than 2 million shares have changed hands. That’s well above the company’s daily average trading volume of about 292,000 shares.
HGEN stock is down 84.6% as of Friday morning. The stock has also lost 99.9% of its total value over the last 12 months.
Investors looking for more of the latest stock market stories today are in the right place!
InvestorPlace offers up all of the hottest stock market news that traders need to know about on Friday! A few examples include what’s happening with shares of QuantumScape (NYSE:QS), AlloVir (NASDAQ:ALVR) and more. All of that news is ready to go at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
