Epix Says It May File For Bankruptcy Protection

LEXINGTON, Mass. (AP) — Biotechnology company Epix Pharmaceuticals Inc. said Tuesday it may have to file for bankruptcy protection if it is unable to restructure its debts.

The company also offered to pay off some of its debts with a combination of cash and stock, and sold some of the marketing rights to a vascular imaging agent for $28 million.

Last month, the company said an independent auditing firm expressed concerns about Epix's ability to remain in business. A few weeks earlier, the company said it would cut its work force in half and narrow its research and development strategy.

Epix shares have lost 65 percent of their value in 2009, and after Tuesday's announcement, they fell 10 cents, or 22 percent, to close at 36 cents.

Epix said it started an offer in which the holders of $100 million in convertible senior notes, which are due in 2024, are able to trade in their notes. Each $1,000 can be traded for $180 cash and 339 shares of Epix. People who trade in their notes will have the right to additional payments if the company buys back more notes in the future.