Dive Brief:
- ViewRay, a Denver-based company that makes an MRI-guided radiation therapy system to treat cancer patients, filed for Chapter 11 bankruptcy on Monday.
- Inflation and supply chain disruptions pushed back installations of the company’s MRIdian systems and payment schedules, CEO Paul Ziegler said in a sworn declaration filed Sunday in U.S. Bankruptcy Court for the District of Delaware.
- The firm intends to sell all or a portion of its assets while supporting current customers, it said in a Monday statement.
Dive Insight:
ViewRay received $6 million of debtor-in-possession financing from MidCap Financial Services to support operations during the Chapter 11 process. The company is managing inventory to be able to maintain its systems at customer sites, as it undergoes layoffs and looks to sell its assets.
"Despite the operating challenges, MRIdian has facilitated real societal value and remains critically important for a broad population of cancer patients, including those who were previously considered untreatable," Ziegler said in a company statement.
Ziegler, ViewRay’s former chief commercial officer, was promoted after former CEO Scott Drake resigned on Saturday. Drake will continue to be a director with the company. Two other directors resigned, shrinking the company’s board from nine to seven members.
ViewRay is planning to cut 71 employees, after laying off 36 people earlier this year. In total, it expects to have 232 employees, including 162 people in the U.S, after the cuts, according to Ziegler’s declaration filed in the bankruptcy court.
The company has had negative cash flows since its inception, according to the declaration. As of April, it had $86 million in cash for the remaining three quarters of 2023, more than double its forecasted cash burn.
ViewRay had about $226 million in assets and $178 million in liabilities as of April 30, according to the court documents.
