January 26, 2023
Acerus Pharmaceuticals Corporation (TSX:ASP) et al., a Mississauga, Ontario-based group of companies in the business of the commercialization and development of prescription health products, with a focus on urology and men’s health, obtained CCAA protection on January 26. As of September 30, 2022 the companies had negative cash flow for the fiscal year of nearly $18.6 million from operating activities. Working to advance Natesto, the companies' primary product which is currently their sole source of revenue, through the COVID-19 pandemic resulted in a net-loss in respect of Natesto. Health care provider offices were closed for a significant period from 2020 through 2021, resulting in patient volumes and prescriptions declining significantly. Additionally, the significant costs associated with sales and marketing to develop the market for Natesto in the US resulted in significant losses and are a primary reason behind the companies’ financial difficulties. These financial challenges, among others, have resulted in the companies losing a number of key employees from 2021 through 2022, including the resignation of the CFO in November 2022. EY was appointed Monitor and FAAN was appointed CRO. Stikeman Elliott is counsel for the companies, Fasken is counsel for the Monitor and BLG is counsel for the DIP lender, First Generation Capital Inc.
By Dina Milivojevic