Clarus Therapeutics files Chapter 11 bankruptcy, will auction testosterone drug

Chicago, Sept. 6 – Clarus Therapeutics Holdings, Inc. with subsidiary Clarus Therapeutics, Inc. made a voluntary Chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware on Sept. 5, according to an 8-K filing with the Securities and Exchange Commission.

The company has filed a variety of first-day motions seeking approval from the court for various forms of customary relief.

The company has entered into retention agreements with its chief executive officer, chief administrative officer and chief financial officer to keep them employed through the sale of Clarus’ assets or Nov. 30, whichever comes first.

The company’s sole commercial asset is Jatenzo, a drug approved for use to treat testosterone deficiency in men with certain medical conditions.

Clarus plans to accept bids from interested parties that want to acquire Jatenzo and related assets, free and clear of Clarus’ debt.

The company worked through a process of exploring strategic options with Raymond James before filing.

In the filing, the company lists $48.94 million as its total assets and $62,003,000 of total debts.

The three largest claims are from inVentiv Commercial Services, LLC in a disputed amount of $5,547,373.34, Intouch Group, LLC with a trade claim of $1,766,646 and Ascent Health Services, LLC with a trade claim of $532,780.45.

The Northbrook, Ill.-based pharmaceutical company filed bankruptcy under Chapter 11 on Sept. 5. The case number is 22-10845.

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