Clarus pursues bankruptcy sale

NORTHBROOK - Clarus Therapeutics Holdings Inc. said it has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.

Clarus has also filed a motion seeking authorization to pursue an auction and sale of its sole commercial asset, JATENZO, a drug approved for use by health care providers to treat testosterone deficiency in men with certain medical conditions.

Clarus has filed a series of motions with the court seeking to ensure the continuation of normal operations while on this path. Clarus believes it has sufficient financial resources to meet its operational and financial obligations to patients, health care providers, suppliers and employees through the Chapter 11 process, the company said. In addition, scaled-back efforts will continue to support commercialization of JATENZO.

"After thoroughly exploring our strategic options in a robust process conducted by the Capital Structure Advisory team at Raymond James, and in light of the extremely challenging financial markets, Clarus' board of directors and its senior management team have unanimously concluded that a structured sale process represents the best possible solution for Clarus and its stakeholders," said Dr. Robert Dudley, CEO of Clarus.