After ages of speculation, Decode Genetics has finally declared bankruptcy -- and blogger Dan MacArthur is all over it. The company announced that it has filed for Chapter 11 bankruptcy in the US and also noted that it has entered into an agreement for a US investment firm to sell off a subsidiary that conducts most of the company's core business.
MacArthur adds, "While deCODE will limp on for a couple more years under this agreement, this is very much a temporary fix. The core problem for the company - figuring out how it can use its expertise and unique resources to generate an actual profit, rather than simply more Nature Genetics paper - remains."
Decode has a note to subscribers to the DecodeMe service, calling the latest events a "restructuring" and assuring customers these developments "will underpin our ability to continue to keep you in the forefront of understanding what the latest advances in genetics mean for you and your health." In a separate email to customers posted on MacArthur's blog, the company adds a few more details about the sale of its business unit.
The Wall Street Journal reports that the 13-year-old company never turned a profit, and notes that the company "said that in the event of a liquidation, any recovery for stockholders would be 'highly unlikely.'"
And if you're looking for background, GenomeWeb Daily News has a story that includes previous challenges Decode has faced.