This story originally ran on Dec. 4 and has been updated to include additional developments.
Vermillion this week said that US Bankruptcy Court in Delaware has approved its disclosure statement, paving the way for voting on the company's reorganization plan.
The company also announced late last week that it has amended its Chapter 11 bankruptcy reorganization plan by reducing the principal balance on its 7 percent senior convertible notes by more than half to to $5 million.
When Vermillion filed its reorganization plan on Nov. 24, it listed a balance of $12.1 million on the notes. The company said last week that on Dec. 1, it exchanged $3 million of the 7 percent notes for 175,417 shares of its common stock par value $0.001. Two days later it exchanged $4.1 million of the notes for 246,250 shares of its common stock, par value $0.001
Because those notes are considered unsecured claims, their holders are eligible to vote either to accept or reject the reorganization plan [See PM 12/04/09].
In a statement, Gail Page, executive chairperson of Vermillion's board, said, "We are pleased to report that we have continued cooperation from our stakeholders on the restructuring."
The company also filed a projected income statement with the bankruptcy court last week.
In it, Vermillion said it anticipates revenues of $970,000 for the first quarter of 2010, all of it from sales of the OVA1 test for ovarian cancer, approved by the US Food and Drug Administration in September and slated for commercial launch in Q1 2010 [See PM 09/17/09].
For full-year 2010, the company projects total revenues of $9.7 million, all of it from OVA1 sales. By 2011, total and OVA1 revenues are projected to be more than $34 million.
Losses for Q1 2010 are expected to be $3.4 million. For full-year 2010, losses are projected at $8.3 million.
By Q1 2011, however, Vermillion expects to move into the black with a profit of $60,000. Full-year 2011 profit is projected at $9.3 million, according to the document filed with the court.
A hearing on the reorganization plan is set for Jan. 7, 2010.