Repros Plunges As Company Says May Face Bankruptcy

NEW YORK (AP) — Repros Therapeutics Inc. said Monday it does not have enough cash to cover its expenses, and has hired a law firm specializing in bankruptcy in an effort to cut down is debts. The company's stock plunged to an all-time low.

Repros has expressed doubts this year about its ability to stay in business. The company said in March that it would need to raise money, potentially by selling assets or the entire company. Earlier this month, it stopped development of its drug candidate Proellex because of safety issues.

The company said Monday it does not have enough cash and assets to cover its expenses and debts. It engaged a law firm specializing in bankruptcy to help negotiate and reduce accounts payable, or the money it owes to vendors. Repros said several vendors have stopped working with the company and announced that they intend to sue to recover what they owe. One has filed a suit worth $147,000, the company said.

In afternoon trading, the stock lost 31 cents, or 27 percent, to 84 cents, after earlier slumping to a low of 74 cents. Because of its low stock price, Repros may be de-listed from the Nasdaq Stock Market later this year. The Nasdaq requires that companies have a market capitalization of at least $50 million, and based on Friday's closing price, Repros had a market cap of about $17.5 million.