Without FDA approval the biotech company has been looking for additional funding as well has having to lay off staff...sometimes the ground in the bio tech industry can be pretty shaky...depending on the outcome of the products produced, their success and the actions of the FDA...BD
NJ Biz examines Genta, which has gone into survival mode as it seeks a way to gain FDA approval of its lead cancer therapy, Genasense. The FDA turned thumb's down on the therapy in 2004, and the company--which has yet to turn a profit--has been forced to lay off more than half of its staff since the end of 2007. Genta's auditors, meanwhile, have placed a 'going concern' warning on the biotech company and the developer is selling off its only marketed product.
The story also makes the point that biotechs are often cash-hungry concerns that know how to go into "turtle mode" when they need to hunker down and raise funds.