Health Testing Starting Chapter 7 UBiome Files with Plans to Turn Off

<div _ngcontent-c1[ads1]5 = "" innerhtml = "

In October 2018, microbiome testing started up uBiome quite high, less than a month before the company had announced a transition to more therapeutic products, raised $ 83 million dollars in a venture capital round, and laid a previous CEO Novartis Director of the Board .

Fast forward a year later: Company employees have resigned facing law enforcement investigation over billing practice, it is in bankruptcy litigation, and it filed a motion on Tuesday to proceed from Chapter 11 to Chapter 7 bankruptcy, which would mean liquidating the assets and closing. [19659009] A lot can happen in 12 months.

San Franc isco-based company was founded in 2012, and the first product was a home kit where people could obtain fecal samples and submit them for genomic testing. The company then claimed to provide a report on the gut microbiome – bacteria present in the gut that can have a major impact on people's health.

The company then began offering a test for irritable bowel syndrome and a test for vaginal health. These tests required a doctor's order. The company's practices involving doctors who ordered the tests are reportedly under investigation by law enforcement, and its Chapter 11 bankruptcy filing included notes on millions of dollars owed by insurance companies as reimbursement. In July, the company's employees and co-CEOs, Jessica Richman and Zac Apte, withdrew from the company.

During the company's filing of Chapter 11, the company had indicated that it would be looking at a sale. According to the motion brought before the court today, the company failed to secure loans that would allow it to continue operating. As a consequence, it has asked the court to terminate the business and liquidate the assets in order to repay the creditors.

The bankruptcy court still needs to approve the proposal. If it is accepted and the company moves to Chapter 7, the liquidation of uBiome's assets will be effected under the supervision of a court appointed trustee.

">

In October 2018, microbiome testing started uBiome quite high. Less than a month before, the company had announced a change for more therapeutic products, collected $ 83 million in a venture capital round a former CEO of Novartis.

A year later: the company's employees have resigned, it faces law enforcement investigation into billing practices, it is currently in bankruptcy , and it filed a motion Tuesday to move from Chapter 11 to Chapter 7 bankruptcy, which will mean liquidating the assets and closing.

A lot can happen in 12 months.

The San Francisco-based company was founded in 2012, and its first product Ukt was a home kit where people could obtain fecal samples and submit them for genomic testing, the company then claimed to provide a report on the gut microbiome – the bacteria present in the gut that can have a major impact on people's health.

The company then began offering a test for irritable bowel syndrome and a test for vaginal health. These tests required a doctor's order. The company's practices involving doctors who ordered the tests are reportedly under investigation by law enforcement, and its Chapter 11 bankruptcy filing included notes on millions of dollars owed by insurance companies as reimbursement. In July, the company's employees and co-CEOs, Jessica Richman and Zac Apte, withdrew from the company.

During the company's filing of Chapter 11, the company had indicated that it would be looking at a sale. According to the motion brought before the court today, the company failed to secure loans that would allow it to continue operating. As a consequence, it has asked the court to terminate the business and liquidate the assets in order to repay the creditors.

The bankruptcy court still needs to approve the proposal. If it is accepted and the company moves to Chapter 7, the liquidation of uBiome's assets will be effected under the supervision of a court appointed trustee.