Failed biosimilars company to be sold

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Failed biosimilars company to be sold

Biosimilares/Novedades | Posted 20/09/2013 0 Post your comment

The assets of biosimilars developer Elona Biotechnologies (Elona) will be auctioned on 27 September 2013 unless sold before 6 September 2013.

Key Auctioneers is putting up for auction Elona’s state-of-the-art 50,000 square-foot headquarters and manufacturing facility in Greenwood, along with brand new cutting-edge laboratory equipment and intellectual property, including a patent for making biosimilar insulin.

Elona went into receivership in June 2013 after Greenwood officials filed a foreclosure lawsuit against the firm. The company failed to open its Greenwood facility after receiving more than US$8 million in economic development incentives from the city.

In a bid to bring jobs and tax revenues to the city, Greenwood loaned the firm US$6.4 million in 2010 to help it build the production plant, along with US$1.5 million to help it win approval for its insulin from FDA and US$500,000 for equipment. The firm had expected to hire 70 workers.

Founded by former Eli Lilly scientist, Mr Ron Zimmerman, Elona was expected to be a major player on the biosimilar insulin market. However, the firm struggled to find investors. In January 2013, Elona officials notified the city of financial troubles and said it was running out of cash. That information prompted the Greenwood Redevelopment Commission to declare Elona in default on US$8.4 million in economic development incentives, leading to the company going into receivership.

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Source: Elona, Key Auctioneers