Vermillion's Chapter 11 reorganization plan was approved by US Bankruptcy Court in Delaware on Thursday, the company announced.
As a result, the company will launch head-first into efforts to commercialize its OVA1 tumor triage diagnostic for ovarian cancer with Quest Diagnostics. The test received 510(k) clearance from the US Food and Drug Administration in September and the court's approval of Vermillion's reorganization plan had been expected.
Vermillion filed for Chapter 11 protection in late March.
The court's approval also frees up the company to proceed with the development of other tests in its R&D pipeline, including additional diagnostics for ovarian cancer, as well as tests for thrombocytopenic purpura and peripheral artery disease.
Earlier in the week, Vermillion's unsecured creditors had approved the reorganization plan, paving the way for Bankruptcy Court to give the plan its thumbs up.
In anticipation of the plan's approval, Vermillion has been raising funds. It announced separately on Thursday the closing of a private placement of stock with a group of investors that raised $43 million in gross proceeds.
The transaction resulted in the sale of about 2.3 million shares of its common stock at a price of approximately $18.5 per share.