Synthego Corp., a gene-editing tool manufacturer, filed for bankruptcy and plans to sell itself to its main lender, Perceptive Advisors, exchanging $85 million in debt for ownership. Despite raising $392 million, Synthego struggled to achieve profitability and faced a significant increase in its debt burden over recent years. With stagnant cash flow, the company continues to provide essential gene-editing solutions for pharmaceutical and agricultural developments. In addition to the bankruptcy proceedings, Synthego is involved in a legal dispute with Agilent Technologies over patent issues, awaiting a court ruling.
By the end of 2023, the company was still not generating positive cash flow and the interest burden had expanded in excess of ten times what it was in 2020-2021.
Synthego sells gene-slicing tools and software that helps companies develop everything from new pharmaceuticals to agricultural products.
Perceptive is also loaning the company as much as $12.5 million to pay for the Chapter 11 case.
Synthego, based in Redood City, was founded in 2012 by former employees of Elon Musk's SpaceX company.
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