InVivo Therapeutics Faces Survival Threat Following Bankruptcy Filing

InVivo Therapeutics Holdings US46186M6057

The future of InVivo Therapeutics Holdings Corp. is hanging in the balance after the company initiated Chapter 11 bankruptcy proceedings. A combination of severe clinical setbacks and precarious funding has plunged the biotech firm into an existential crisis, casting significant doubt over outcomes for its shareholders. Market attention is now fixed on the progression of the reorganization process in a U.S. bankruptcy court in Delaware.

• The Chapter 11 petition was filed in February 2024.
• The company's stock is now traded exclusively on the over-the-counter market under the ticker symbol NVIVQ.
• In March 2023, the primary endpoint of the INSPIRE 2.0 clinical study was not met.

Years of research disappointments have culminated in the current financial predicament. The most recent major blow came from the INSPIRE 2.0 trial, which was evaluating a specialized scaffold for treating acute spinal cord injuries. Its failure to achieve the main goal followed an even more severe earlier trial, which was terminated in July 2017 following participant fatalities.

The ongoing restructuring effort now represents the sole potential avenue for preserving any residual equity value. Whether clinical programs can continue at all is entirely contingent on the company's ability to secure new financing or identify strategic partners through the bankruptcy process.

Over-the-Counter Trading and Going Concern Doubts

Trading has been relegated to the OTC marketplace, where the equity is already flagged for potential delisting. Significant doubts regarding the company's ability to continue as a going concern have been raised. Share price volatility is expected to remain extreme, with valuation being directly tied to the outcomes of creditor negotiations.

Approval of management's proposed reorganization plan by the Delaware court will be determined in the coming weeks. Subsequent reports on the debt restructuring will be critical, offering clarity on whether existing shareholders might retain any recoverable stake once the proceedings conclude.